How the electrician hourly rate calculator works
Most electricians set their hourly rate by checking what other shops charge. This calculator builds yours from your own numbers instead: what you'd pay someone to do your job, how much of your day you can actually bill, and the profit you want to keep.
- Your current rate. Where you're starting from.
- Journeyman pay. What you'd pay a journeyman to do the work you do. Even if it's just you, your business has to pay you a real wage.
- Jobs and drive time. How many jobs you do in a day and how long you spend driving between them.
- Quotes and supply runs. Time spent quoting on-site and at the supply house.
- Your profit goal. What you want left over after you're paid and every bill is covered.
When you finish, we email you the hourly rate your business should be charging, with the numbers behind it.
What goes into an electrician's hourly rate
Your billing rate isn't your wage. Every hour you bill has to pay for five things:
- Pay. The wage for whoever does the work, you included.
- Labor burden. Payroll taxes, workers' comp and benefits on top of that wage. The calculator adds 30%.
- Unbilled time. Every hour you work but can't put on an invoice.
- Overhead. The van, fuel, insurance, tools, phone, software and everything else it takes to keep the doors open.
- Profit. Money the business keeps after all of the above. It's what pays for a slow month, a new van or your next hire.
Leave any one of these out and the rate looks fine on paper while the business quietly loses money.
The unbilled hours most electricians forget
Unbilled time is where most hourly rates go wrong. You might work a full day, but only part of it lands on an invoice. The calculator adds up the time you spend:
- Driving to and from jobs
- Setting up and cleaning up
- Explaining the work to the customer
- Quoting on-site
- Running to the supply house and returning unused material
- Paperwork and permits
- Fueling up, organizing the van and hauling away packaging
- Team meetings and toolbox talks
- No-shows, cancellations and waiting for access
It's common for this to eat a third of the day or more. Those hours still cost you a wage, so the hours you do bill have to cover them.
The fewer hours you can bill, the higher your hourly rate has to be to earn the same money.
Why not charge what other electricians charge?
Because you don't know their costs, and they probably don't either. A shop with short drives and a full schedule can charge less than a shop covering a big rural area and still make more money. Copying a competitor's rate means copying their mistakes too. To see what electricians are charging in 2026 and why the range is so wide, read how much electricians charge per hour.
What to do with your rate
Your hourly rate is the base for every price you quote. Multiply it by the hours a job takes, add materials and markup, and you have a flat rate price. Try it with the free flat rate calculator, or read the complete guide to flat rate pricing.
If your new rate is a lot higher than what you charge now, you're not alone. Most electricians who run their real numbers find they've been undercharging for years. Here's how to raise your prices without losing your best customers.