Hourly rate calculator – what should you charge?
Plenty of tradespeople set their rate on gut feeling and only later find the money doesn’t add up. Here you start from the take-home pay you actually want and see straight away what hourly rate that demands – both excluding and including VAT.
Work out your hourly rate
Start from what you want to earn and we work out the hourly rate you need to charge. We add employer contributions, your overhead and a profit margin.
An estimate. Employer contributions are prefilled at 31.42% (normal Swedish rate) and holiday pay at 12%. Adjust overhead (tools, vehicle, insurance, admin) and profit margin to your business. If you calculate on your own gross salary in a sole trader, you can set holiday pay to 0.
This tool gives an estimate and is an aid – not a finished calculation. Always check the result against drawings, applicable regulations, supplier data and your professional experience before giving a binding price, ordering material or using the file. ByggExp is not responsible for decisions made solely on the basis of the tool.
Want help taking this further?
Briefly describe what you need and we’ll help you with a quote, material and next steps – free of charge. Only the contact field is required.
How the hourly rate is calculated
- Start from your desired gross salary per month.
- Add employer contributions (about 31.42%) – the cost of having you employed.
- Add overhead: tools, vehicle, insurance, premises and admin.
- Add a profit margin so the business breaks even and can grow.
- Divide the total by your billable hours – that gives the hourly rate.
Don’t forget the non-billable hours
A common mistake is to count all working hours as if they were billable. In reality, time goes to quotes, purchasing, travel and administration. If you assume too many billable hours the hourly rate comes out too low and you earn less than you think.
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Frequently asked questions about hourly rate
- What should I charge per hour as a tradesperson?
- There is no single figure that fits everyone. The rate has to carry your salary, all your overhead and a profit, spread across the hours you can actually bill. Enter your desired salary in the calculator and you’ll see what your own business needs – instead of guessing from what others charge.
- Why is the hourly rate so much higher than my salary per hour?
- Because the rate has to carry the whole business, not just your pay. On top of salary sit employer contributions, all your overhead and the time you can’t bill – and the company still needs to turn a profit. Your wage is only one slice of what each billable hour has to bring in.
- What are billable hours?
- The hours you can actually bill a customer. Travel, quotes, admin and other non-billable work don’t count – so they are often clearly fewer than your total working time.
- Is VAT included in the hourly rate?
- The calculator shows the hourly rate both excluding and including VAT (25%). For private individuals you usually state the price including VAT.