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Electrician hourly rate calculator

Start from what you want to take home, add what it costs to run the truck and the business, and divide by the hours you can actually bill.

Your pay

What you want to pay yourself per year Set aside self-employment tax (15.3% on 92.35% of pay)Social Security wage base2025 figure. Above it only the 2.9% Medicare part applies. Update it each year.Staff wages and on-costs per yearApprentice or laborer

Overheads per year

Truck, fuel and upkeepInsuranceTools and test gearLicense, permits and CEPhone, software, officeEverything else

Billable time

Weeks worked per yearAfter holidays and sick daysHours worked per weekBillable share (%)Time you can charge for, after travel, quoting and adminHours in a charged dayProfit margin on top (%)Money the business keeps after paying you

Hourly rate

Your hourly rate

Before any sales tax. Covers your pay, overheads and profit.

Day rate

Break-even hourly rate (no profit)

Billable hours per year

Total yearly cost to cover

Self-employment tax set aside

Overheads

See the Electrician Kit

Rounded to the cent line by line. A guide, not tax advice.

How it works

Yearly cost = your pay + self-employment tax set aside + staff + overheads.
Self-employment tax = 12.4% Social Security on 92.35% of your pay up to the wage base, plus 2.9% Medicare on all of it. Untick it if you pay yourself through payroll.
Billable hours = weeks × hours per week × billable share. At 48 weeks, 40 hours and 70%, that is 1,344 hours, not 2,080.
Hourly rate = yearly cost ÷ billable hours ÷ (1 − profit margin).

This is a planning number, not a tax figure. Income tax is not included because it depends on your filing status and state; set your pay target high enough to cover it. In most states labor on electrical work in a home is not subject to sales tax, but a few states tax it, so the calculator leaves sales tax out.

Three worked examples

Each one was checked against an independent calculation. Type the same numbers above and you will get the same results.

Example 1

Solo electrician, self-employment tax set aside

Your pay$70,000

Overheads$20,000

Billable48 wk × 40 h × 70%

Profit margin10%

SE tax$9,890.69

Yearly cost$99,890.69

Billable hours1,344

Hourly rate$82.58

Day rate$660.64

Example 2

Owner paid through payroll (no SE tax line)

Your pay$90,000

Overheads$26,000

Billable48 wk × 45 h × 75%

Profit margin15%

Yearly cost$116,000

Billable hours1,620

Hourly rate$84.24

Day rate$673.92

Example 3

Owner plus one apprentice

Your pay$80,000

Overheads$31,400

Staff$45,000

Billable48 wk × 40 h × 80%

Profit margin12%

SE tax$11,303.64

Yearly cost$167,703.64

Billable hours1,536

Hourly rate$124.07

Day rate$992.56

USA (Sales Tax)

Now do it for every job.

$29.99

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Questions

Why is my rate so much higher than my old wage?

Because as an employee someone else paid for the van, the insurance, the tools and the hours you spend quoting and driving. Billable share is usually the biggest lever: going from 60% to 75% billable cuts the rate you need by a fifth.

Should I charge by the hour or per device?

Both work. Many residential electricians price small jobs per opening or per device and use the hourly rate behind it: if a receptacle takes 20 minutes, a third of your hourly rate plus the part is the floor for your per-device price.

What profit margin should I add?

Enough to replace tools and trucks and survive a slow month. 10% to 20% on top of your own pay is common for small shops.