Does owner pay count as profit in this estimate?

No. Owner pay is treated as a planned business cost; the target margin is added after covering owner pay and annual overhead.

Homeservice pricing calculator

Service Pricing Calculator

Build a planning rate that covers your desired owner compensation and business overhead across billable hours.

Desired annual owner pay ($)Annual business overhead ($)Billable hours per yearTarget profit margin (%)

Cost-covering hourly rate

$83.33

Suggested hourly rate

$104.17

Annual revenue at suggested rate

$125,000.00

Planned annual profit

$25,000.00

Formula and assumptions

Cost-covering hourly rate = (owner pay + annual overhead) ÷ annual billable hours. Target rate = cost-covering rate ÷ (1 − target margin).

Planning estimate only. Results depend on the values and assumptions entered and are not accounting, tax, legal, or financial advice.

Frequently Asked Questions

Administration, marketing, training, and time between projects are usually not billable. Pricing against realistic billable hours helps account for that non-billable time.