Knowing what to charge per hour is critical to running a profitable service business. With QuoteIQ’s Hourly Rate Calculator, you can enter your labor costs, monthly expenses, and desired profit margin to calculate the exact hourly rate you should be charging. This ensures every job covers your costs and generates the income you need.
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Step 1: Go to Settings
From your main dashboard, click the Settings tab on the left-hand side of the screen.
Step 2: Open the Hourly Rate Calculator
In the Settings screen, scroll down under Company Info and select Hourly Rate Calculator.
Step 3: Add Labor Costs
At the top, you’ll see a summary of your Target Hourly Rate and Break Even Point. These will update as you add details.
Below that, enter your labor costs:
Add the name and hourly rate of each employee.
If you have more than one team member, click + Add Employee to continue building your list.
This will automatically calculate each employee’s annual salary.
Step 4: Add Monthly Expenses
In the Expenses section, input your monthly costs:
Taxes
Rent
Vehicles
Insurance
Equipment
Supplies
Miscellaneous
Click + Add Expense to include any additional monthly costs.
Step 5: Review Break Even Point & Profit Margin
Scroll back to the top. You’ll now see:
Break Even Hourly Rate: This is the minimum amount you must charge per hour to cover all your labor and monthly expenses.
Target Hourly Rate: Enter your desired profit margin percentage (like 40% or 50%) into the margin field. QuoteIQ will automatically calculate the ideal hourly rate you should charge to hit that goal.
Step 6: Save and Exit
When you’re done, click Save.
Your expense data will automatically update in the Analytics Dashboard so you can track your profitability over time.