Minimum Bid
Calculator.
Most guys who go independent charge what “sounds reasonable.” Then they wonder why they can't make payroll. This is the number below which you're paying to work.
Your truck costs money whether you're billing or sitting in traffic. Don't leave it out.
GL is non-negotiable. If you're working without it, you're one job away from losing everything.
The other 3.0hrs go to driving, quoting, callbacks, and paperwork. If you're billing 8 hrs a day, you're working 12.
48 weeks = 4 weeks off for holidays, slow spells, sick days. If you say 52, you're lying to yourself.
This is what you want in your pocket before taxes. We'll gross it up for self-employment tax (15.3%) automatically.
| Vehicle & fuel | $9,600 |
| Vehicle insurance | $1,800 |
| General liability | $3,000 |
| Tools (annual) | $1,000 |
| License & certs | $300 |
| Overhead | $2,400 |
| Total overhead | $18,100 |
Every hour you spend driving, quoting, and doing callbacks is an hour you're not billing. That gap is why your effective rate always ends up lower than you think.
These are MINIMUMS. Material markup, complexity, and specialty skills should push these higher. If you're undercutting these numbers to win work, you're building a business that doesn't work.
You need to bill $92/hr just to hit your income target. Before materials. Before markup. Before anything goes wrong on a job.
Most residential contractors in your market charge $85–$150/hr. If your number is above that range, your overhead needs a haircut. If it's below, you're leaving money on the table.
See what union journeymen make →