Break-Even Labor Rate Calculator

How it works

Billable hours = techs × paid hours × billable % · Labor per billable hour = wage × (1 + burden) ÷ billable % · Break-even rate = labor + overhead ÷ billable hours · Target rate = break-even ÷ (1 − net profit %)

The number most owners miss is the billable share. A tech paid for 2,080 hours rarely bills more than 1,100 to 1,400 of them once drive time, shop time, callbacks and training come out. Every unbilled hour still has to be paid for by the hours you do bill.

What counts as overhead

• Office and dispatch wages, owner salary if it isn't in field labor.
• Rent, utilities, insurance, licenses, software and phones.
• Trucks: payments, fuel, insurance and maintenance.
• Marketing, accounting, tools and uniforms.
• Leave out job parts and equipment; those are priced on each ticket.

Using the result

• The break-even rate is the floor for labor. Anything below it loses money on every hour.
• Use the loaded labor cost in the flat-rate price builder and the agreement pricing calculator.
• Raising the billable share by 5 points often does more than a price increase. Better dispatch and fewer callbacks get you there.