Short answer
An electrician's hourly rate is the year's loaded labour cost plus overhead, divided by billable hours, then divided by one minus your margin. Example: a $35 wage, 30% burden, 70% billable and $32,032.00 of overhead break even at $87.00 and charge out at $116.00.
- Assumed: $35 plus 30% burden is $45.50 per paid hour, but $65 per billable hour at 70% billable.
- Overhead of $32,032 over 1,456 billable hours adds $22 an hour.
- At 50% billable the same person needs $162.40 an hour; at 80%, $101.50.
- Wage x 2 is $70, which is $17 under the $87 break-even.
- Eight billable hours come to $928; a service day that sells 5.6 hours brings in $649.60.
On this page
- Electrician hourly rate formula: cost per billable hour, then margin
- Electrician hourly rate calculator: try your own numbers
- Billable share: the input that moves the rate most
- Does wage x 2 or wage x 3 work? The shortcut tested on three wages
- Owner-operator or employee: which inputs change
- Journeyman plus apprentice: the crew rate
- From the hourly rate to a service-call minimum and a day rate
- After-hours rate and prevailing-wage jobs: rerun the formula
- Excel formulas for an hourly rate sheet, and the markup mistake
- Hourly rate or job price: which tool to use
- Step-by-step
- FAQ
Electrician hourly rate formula: cost per billable hour, then margin
Work out what one billable hour costs you, then divide by one minus your margin. The step most rate sums skip is that you pay for more hours than you bill.
- Loaded cost per paid hour = wage x (1 + burden %).
- Billable hours = paid hours a year x billable share %.
- Break-even rate = (loaded cost x paid hours + this person's overhead) / billable hours.
- Hourly rate = break-even rate / (1 - margin).
I build pricing maths; I am not an electrician. Every figure below is an assumption for one journeyman on the payroll. Replace each from your payroll, your insurance bills and your timesheets.
| Line | Per year (assumed) |
|---|---|
| Van payment | $7,200 |
| Van fuel | $3,900 |
| Van insurance | $2,100 |
| Van maintenance and tyres | $1,500 |
| Tools and test equipment replaced | $1,800 |
| Licence renewal and continuing education | $450 |
| Liability insurance, this person's share | $2,600 |
| Phone and software | $1,680 |
| Office share: admin pay, rent, bookkeeping | $10,802 |
| Total for this person | $32,032 |
The other inputs: a $35 wage, 30% burden, 2,080 paid hours (52 weeks x 40), 70% billable and a 25% margin. Burden here is the employer's share of Social Security and Medicare, which the IRS gives as 6.2% and 1.45%, plus an assumed 22.35 points for workers' compensation, unemployment insurance, paid leave and benefits. Build your own figure with the labor burden calculator guide.
Electrician hourly rate calculator: try your own numbers
Six inputs give the charge-out rate. It opens on the journeyman example and shows $116.00 an hour.
Worked example: Journeyman on the payroll with a van: $35 wage, 30% burden, 2,080 paid hours, 70% of them billed, $32,032 of overhead for this person (every input is an assumption you replace)
| Item | Value |
|---|---|
| Labour burden % (input) | 30% |
| Paid hours a year (input) | 2,080 |
| Billable share of paid hours % (input) | 70% |
| Overhead for the year (this person's share) (input) | $32,032.00 |
| Target margin % (input) | 25% |
| Hourly wage paid (or the owner's own pay per hour) (input) | $35.00 |
| Loaded labour cost per PAID hour | $45.50 |
| Labour cost for the year (loaded rate x paid hours) | $94,640.00 |
| Billable hours a year | 1,456 |
| Labour cost per billable hour | $65.00 |
| Overhead per billable hour | $22.00 |
| Break-even rate per billable hour | $87.00 |
| Hourly rate to charge | $116.00 |
| Profit per billable hour | $29.00 |
| Eight billable hours at that rate | $928.00 |
| Revenue a year at that rate | $168,896.00 |
| Rate as a multiple of the wage | 3.31 |
| Rate if you MARK UP the cost instead | $108.75 |
| Margin you actually keep with markup | 20% |
| Lost per billable hour by marking up | $7.25 |
| Lost per year by marking up | $10,556.00 |
Computed with the same formulas as the free calculators on this site. Change any input in the calculator above to see your own numbers.
Check it: $35.00 x 1.30 = $45.50 per paid hour, or $94,640.00 for the year. Only 1,456 of the 2,080 paid hours are billed, so labour is $65.00 per billable hour. Overhead adds $32,032.00 / 1,456 = $22.00. Break-even is $87.00; divided by 0.75, the rate is $116.00.
Billable share: the input that moves the rate most
Billable share is billed hours divided by paid hours. In the example 624 paid hours a year never reach an invoice: drive time, estimates, call-backs, supply runs, training. Their cost has to sit in the hours that do.
| Billable share | Billable hours a year | Labour per billable hour | Overhead per billable hour | Break-even rate | Rate at 25% margin |
|---|---|---|---|---|---|
| 50% | 1,040 | $91 | $30.80 | $121.80 | $162.40 |
| 60% | 1,248 | $75.83 | $25.67 | $101.50 | $135.33 |
| 70% | 1,456 | $65 | $22 | $87 | $116 |
| 80% | 1,664 | $56.88 | $19.25 | $76.13 | $101.50 |
From 80% to 50% billable the rate rises by $60.90 with no change in pay or overhead. Guessing high is costly: price at 80% ($101.50) while really billing 60%, and the whole 25% margin is gone, because $101.50 is exactly the break-even rate at 60%.
Measure it. Take one month of timesheets and invoices. Assumed month: 176 paid hours and 123 hours on invoices. 123 / 176 = 69.9%. Use several months if your work is seasonal, and count flat-rate jobs at the hours they really took.
Does wage x 2 or wage x 3 work? The shortcut tested on three wages
A fixed multiple of the wage fails because overhead per hour does not shrink when the wage does. The table changes only the wage.
| Person | Wage | Wage x 2 | Wage x 3 | Break-even rate | Rate at 25% margin | Rate / wage |
|---|---|---|---|---|---|---|
| Apprentice | $20 | $40 | $60 (keeps 1.4%) | $59.14 | $78.86 | 3.94x |
| Journeyman (the example) | $35 | $70 | $105 (keeps 17.1%) | $87 | $116 | 3.31x |
| Master | $48 | $96 | $144 (keeps 22.8%) | $111.14 | $148.19 | 3.09x |
Wage x 2 is under break-even in every row. For the journeyman it is $17 short per hour, a loss of $24,752 over 1,456 billable hours. Wage x 3 keeps 1.4% on the apprentice and 22.8% on the master: the lower the wage, the more of the rate is overhead, and the worse the multiple fits. The calculator prints your own multiple so you can see what the shortcut is guessing at.
Try it with your numbers — free
The free calculator does this whole method in about a minute: loaded labour, overhead share, break-even and the price to quote at your margin. No signup, nothing to download, and your numbers stay in your browser.
Open the free electrician pricing calculator →Get the free spreadsheetWant it built around your own rates, services and branding? Done-for-you custom calculator ($497).
Owner-operator or employee: which inputs change
The formula is the same; three inputs move. The wage becomes the pay you want per paid hour, burden becomes your own taxes and benefits, and the billable share usually falls.
Burden. The IRS says "The self-employment tax rate is 15.3%." I start there and add an assumed 8.7 points for your own health insurance and retirement: 24%. How that tax is worked out on your return is your accountant's job, not this page's.
Billable share. An owner who also estimates, orders and invoices bills fewer hours. I assume 55%.
Worked example: Owner-operator: own pay of $48 an hour, 24% burden, 55% billable because the owner also estimates and runs the office (assumed inputs)
| Item | Value |
|---|---|
| Labour burden % (input) | 24% |
| Paid hours a year (input) | 2,080 |
| Billable share of paid hours % (input) | 55% |
| Overhead for the year (this person's share) (input) | $32,032.00 |
| Target margin % (input) | 25% |
| Hourly wage paid (or the owner's own pay per hour) (input) | $48.00 |
| Loaded labour cost per PAID hour | $59.52 |
| Labour cost for the year (loaded rate x paid hours) | $123,801.60 |
| Billable hours a year | 1,144 |
| Labour cost per billable hour | $108.22 |
| Overhead per billable hour | $28.00 |
| Break-even rate per billable hour | $136.22 |
| Hourly rate to charge | $181.62 |
| Profit per billable hour | $45.41 |
| Eight billable hours at that rate | $1,452.99 |
| Revenue a year at that rate | $207,778.13 |
| Rate as a multiple of the wage | 3.78 |
| Rate if you MARK UP the cost instead | $170.27 |
| Margin you actually keep with markup | 20% |
| Lost per billable hour by marking up | $11.35 |
| Lost per year by marking up | $12,986.13 |
Computed with the same formulas as the free calculators on this site. Change any input in the calculator above to see your own numbers.
With the same $32,032 of overhead, the owner's rate is $181.62 against the employee's $116. Overhead per billable hour is $28.00, not $22, because it is spread over 1,144 hours. If you would sooner start from a take-home income target than from costs, the freelance hourly rate calculator guide works that way round.
Journeyman plus apprentice: the crew rate
Bill a two-person crew at the two rates added together. Work out the apprentice's rate from their own inputs; do not take half the journeyman's.
An apprentice's billable share differs from a journeyman's. The U.S. Department of Labor's Registered Apprenticeship page lists paid work, where "Apprentices earn progressive wage as their skills and productivity increase", and "supplemental classroom education". Classroom hours you pay for and time spent learning on site are paid hours with no invoice. I assume 60% billable, a $20 wage and $9,984 of overhead with no van.
Worked example: Apprentice working beside the journeyman: $20 wage, 60% billable, $9,984 of overhead and no van of their own (assumed inputs)
| Item | Value |
|---|---|
| Labour burden % (input) | 30% |
| Paid hours a year (input) | 2,080 |
| Billable share of paid hours % (input) | 60% |
| Overhead for the year (this person's share) (input) | $9,984.00 |
| Target margin % (input) | 25% |
| Hourly wage paid (or the owner's own pay per hour) (input) | $20.00 |
| Loaded labour cost per PAID hour | $26.00 |
| Labour cost for the year (loaded rate x paid hours) | $54,080.00 |
| Billable hours a year | 1,248 |
| Labour cost per billable hour | $43.33 |
| Overhead per billable hour | $8.00 |
| Break-even rate per billable hour | $51.33 |
| Hourly rate to charge | $68.44 |
| Profit per billable hour | $17.11 |
| Eight billable hours at that rate | $547.56 |
| Revenue a year at that rate | $85,418.67 |
| Rate as a multiple of the wage | 3.42 |
| Rate if you MARK UP the cost instead | $64.17 |
| Margin you actually keep with markup | 20% |
| Lost per billable hour by marking up | $4.28 |
| Lost per year by marking up | $5,338.67 |
Computed with the same formulas as the free calculators on this site. Change any input in the calculator above to see your own numbers.
Crew rate: $116 + $68.44 = $184.44 an hour, or $1,475.52 for eight billable hours. Charging the apprentice at half the journeyman's rate would give $174, which is $10.44 an hour short. As the wage steps up, rerun the apprentice's numbers.
From the hourly rate to a service-call minimum and a day rate
Both come straight from the hourly rate. Drive time is billable time if you charge for it, so price it at the same rate.
| Figure | Working | Result |
|---|---|---|
| Trip charge | 25 drive minutes x $116 / 60 | $48.33 |
| First-hour minimum | trip charge + one hour at $116 | $164.33 |
| Day rate, eight hours billed on one site | 8 x $116 | $928 |
| Service day, 70% of eight paid hours billed | 5.6 x $116 | $649.60 |
The two day figures answer different questions. $928 is what to quote when a customer books the whole day. $649.60 is what an ordinary service day brings in at 70% billable, and the rate was built so that this is enough. A day rate below $928 for a full booked day gives hours away.
If you separately bill a trip charge on most calls, those minutes are billable: count them in your billable share. For flat-rate task prices and a pricebook built from an hourly cost, see how to price electrical work.
After-hours rate and prevailing-wage jobs: rerun the formula
When the wage changes, put the new wage through the formula; do not multiply the rate. Assumed pay policy: 50% extra for after-hours calls, so the wage is $52.50.
The after-hours rate is $159.33. Multiplying the normal rate by 1.5 gives $174, $14.67 more, because it also multiplies the overhead, and the van costs the same at night. Charge either, but know which one is cost and which is a premium you chose. Whether overtime pay is owed is a wage-law question for your state labor agency.
Government work. On federal construction contracts the wage may be set for you. The Federal Acquisition Regulation 22.403-1 says contracts "in excess of $2,000" for construction, alteration or repair of public buildings or public works must provide that "no laborer or mechanic employed directly upon the site of the work shall receive less than the prevailing wage rates as determined by the Secretary of Labor". Put the wage from the contract's wage determination in the wage box and rerun. I give no figures: they differ by place and contract.
Excel formulas for an hourly rate sheet, and the markup mistake
Layout: inputs in B2 to B7, one per row, as each formula's note lists them.
Billable hours a year
=B4*B5B4 = paid hours a year, B5 = billable share (as 70%). Put in B8.
Break-even rate per billable hour
=(B2*(1+B3)*B4+B6)/B8B2 = wage, B3 = burden %, B6 = this person's overhead for the year. Put in B9.
Hourly rate to charge
=ROUND(B9/(1-B7),2)B7 = margin %. Put in B10. The rate as a multiple of the wage is =B10/B2.
Billable share from timesheets
=B12/B11B11 = paid hours in the period, B12 = hours on invoices. Format as a percentage and copy to B5.
Trip charge
=ROUND(B10*B13/60,2)B13 = drive minutes. The first-hour minimum is that plus B10.
The mistake: adding 25% to the break-even rate where you should divide. That gives $108.75 and keeps 20% of the rate. It is $7.25 short per billable hour, $10,556.00 over a year. The markup vs margin calculator guide has the conversion chart.
Hourly rate or job price: which tool to use
The calculator on this page sets a rate per billable hour. It does not price a job; the tools below do.
| Tool | Cost | What it does |
|---|---|---|
| Hourly rate calculator (this page) | Free, no signup | One person's charge-out rate from wage, burden, billable share, overhead and margin |
| Electrician pricing calculator | Free, no signup | Prices one job: hours on the call, parts and materials, overhead, break-even and the price to quote. It is not an hourly-rate tool |
| Job Pricing Starter | Free | The same job maths on one sheet for Excel or Google Sheets |
| Done-for-you custom calculator | $497 one-time | A workbook built around your own labour tasks, materials and rates, with a branded quote page and a job log |
The job calculator spreads overhead over billable days and has no billable-share box, so unbilled paid time has to sit inside the overhead figure you give it. Use one method for a whole year so nothing is counted twice.
Put on your rate sheet: a rate per person, the crew rate, the trip charge and first-hour minimum, the after-hours rate, the full-day rate, and the billable share and date they were built on. Licensing rules differ by state: check your state electrical board before you advertise a rate for work that needs a licence.
Step-by-step: Electrician Hourly Rate Calculator: What to Charge per Billable Hour
- Find the loaded cost per paid hour. Wage x (1 + burden %). For an owner, use the pay you want per paid hour and your own tax and benefit burden.
- Measure the billable share. Hours on invoices / paid hours, from at least one month of timesheets.
- Total this person's overhead. Van, tools, licence, insurance, software and a share of the office, for the year.
- Compute the break-even rate. (Loaded cost x paid hours + overhead) / (paid hours x billable share).
- Divide by one minus margin. Break-even rate / (1 - margin); for 25%, divide by 0.75.
- Derive the other rates. Trip charge from drive minutes, first-hour minimum, crew rate, after-hours rate and the full-day rate.
Run your own numbers — free
The free calculator does this whole method in about a minute: loaded labour, overhead share, break-even and the price to quote at your margin. No signup, nothing to download, and your numbers stay in your browser.
Open the free calculator →Get the free spreadsheetWant it built around your own rates, services and branding? Done-for-you custom calculator ($497).
Frequently asked questions
How do I calculate an electrician's hourly rate?
Add the year's loaded labour cost and that person's overhead, divide by billable hours, then divide by one minus your margin. On this page's assumptions a $35 wage with 30% burden, 70% billable and $32,032 of overhead breaks even at $87 and charges out at $116.
How much should an electrician charge per hour?
Enough to cover the hours you pay for but cannot bill, plus overhead and margin. This page quotes no market figure. On the assumed inputs the answer is $116 for an employee and $181.62 for an owner-operator; your own costs will give a different number.
What is a billable share and how do I measure it?
It is hours on invoices divided by paid hours. In an assumed month with 176 paid hours and 123 billed, it is 69.9%. Drive time, estimates, call-backs and training are paid but not billed, and the rate has to carry them.
Does charging three times the wage work for an electrician?
Only by accident. On the assumed inputs wage x 3 keeps 1.4% on a $20 apprentice and 22.8% on a $48 master, because overhead per hour is the same for both. Compute the rate and read the multiple off the result.
What is a reasonable day rate for an electrician?
Eight billable hours at your hourly rate when the customer books the whole day: $928 on the assumed inputs. An ordinary service day at 70% billable sells 5.6 hours and brings in $649.60, which the rate is built to make sufficient.
How much should I pay my electrician per hour?
This page works out the charge-out rate, not the wage. The wage is an input you set from your local hiring market, any union or prevailing-wage terms that apply, and what you can bill. Type it in and the calculator shows the rate it requires.
How do I calculate electrical labor cost for a job?
Multiply the hours the job takes by the break-even rate per billable hour, $87 in the example, then add materials and divide by one minus your margin. The electrician pricing calculator on this site prices one job from hours and materials, with overhead spread over billable days.
Sources
- IRS: Self-employment tax (Social Security and Medicare taxes) — The self-employment tax rate is 15.3%
- IRS: Topic no. 751, Social Security and Medicare withholding rates — Employer's share: 6.2% Social Security and 1.45% Medicare
- Federal Acquisition Regulation 22.403-1, Construction Wage Rate Requirements statute (acquisition.gov, read 13 October 2026) — Federal construction contracts in excess of $2,000: no laborer or mechanic on the site shall receive less than the prevailing wage rates as determined by the Secretary of Labor
- U.S. Department of Labor, Apprenticeship.gov: Registered Apprenticeship Program — Apprentices earn progressive wage as their skills and productivity increase; apprentices are provided supplemental classroom education
I'm not a contractor, landlord or accountant. I build the pricing maths, and every number on this page shows its working so you can check it instead of trusting it. Guides are drafted with AI assistance; every worked figure is computed by the same code as the free calculators. How these guides are made → · Watch the breakdowns on YouTube →