Pricing Guide — Updated April 2026
How Much Should a Contractor Charge in 2026?
Most contractors either undercharge and barely break even — or set rates randomly and lose bids. Here's the actual math: how to calculate what you need to charge to cover your costs and hit your profit target.
Quick Answer
Most US contractors should charge $75–$150/hour for standard work in 2026. Emergency and specialty work runs $150–$250/hour. The right number for your business comes from the formula: (Annual costs ÷ billable hours) × 1.3 — covering all overhead plus 30% profit margin.
The contractor rate formula
The most common contractor pricing mistake is charging based on what competitors charge rather than what your actual costs are. A competitor with lower overhead can profitably charge less than you — and if you match their price, you lose money on every job.
The formula
# Step 1: Calculate your total annual cost
Annual cost = wages + insurance + vehicle + tools + overhead + taxes
# Step 2: Calculate realistic billable hours
Billable hours = working days × hours/day × utilization rate
Solo operator: ~1,200–1,400 hrs/year (accounts for admin, travel, unbilled time)
# Step 3: Add your profit margin (minimum 20%, target 30%)
Hourly rate = (Annual cost ÷ Billable hours) × 1.30
Real example: solo plumber in mid-size US city
This example is for a solo plumber working full-time. Adjust each line item to your actual costs — don't use someone else's numbers as your floor rate.
| Cost Category | Annual Amount |
|---|---|
| Owner salary / draw | $60,000 |
| Health insurance | $6,000 |
| Vehicle (payment + insurance + fuel) | $12,000 |
| Tools + equipment replacement | $4,000 |
| Liability + workers comp insurance | $5,000 |
| Software + phone + office | $3,000 |
| Marketing + advertising | $4,000 |
| Miscellaneous overhead | $3,000 |
| Total annual cost | $97,000 |
The math:
$97,000 ÷ 1,300 billable hours = $74.60/hour to break even
At 30% profit margin: $74.60 × 1.30 = $96.98/hour → round to $100/hour
This doesn't include materials markup (typically 20–30% on parts) which is a separate profit center.
Average contractor rates by trade (US, 2026)
These are market rates, not minimums. Your rate should be based on your own cost calculation — use the market range to sense-check, not to set your floor. Charging below market to win bids is a losing strategy unless your costs are genuinely lower than the market average.
| Trade | Low | Typical | Premium | Emergency |
|---|---|---|---|---|
| HVAC | $85/hr | $125/hr | $180/hr | $150–250/hr |
| Plumbing | $80/hr | $120/hr | $175/hr | $150–225/hr |
| Electrical | $90/hr | $130/hr | $185/hr | $160–250/hr |
| Roofing | $65/hr | $95/hr | $140/hr | — |
| Landscaping | $45/hr | $75/hr | $110/hr | — |
| General Contractor | $70/hr | $110/hr | $160/hr | — |
| Pest Control | $55/hr | $85/hr | $120/hr | $100–160/hr |
How software helps you charge (and collect) more
Setting the right rate is only half the equation. The other half is actually collecting it. Contractors using modern field service software collect invoices 10–20 days faster than those sending paper invoices or manual emails — and automated follow-ups recover 15–25% of invoices that would otherwise go 30+ days overdue.
See exactly what Jobber or HCP would cost your business
Enter your team size and get an instant cost comparison for all three major platforms.
Frequently asked questions
What is a fair contractor hourly rate?
A fair contractor hourly rate in the US in 2026 ranges from $75–$150/hour for most trades. Specialty work, emergency calls and high cost-of-living markets push rates to $150–$250/hour. The right rate covers your labor cost, overhead, insurance, vehicle costs and a minimum 20% profit margin.
Should I charge by the hour or by the project?
Project pricing is generally better for contractors. It removes the time pressure on both sides and rewards efficiency. Use your hourly rate to estimate internally, then price by the job. The exception is emergency service calls where hourly billing (with a minimum service fee) is the standard.
How do I handle materials markup?
Standard materials markup is 20–40% over your cost. This compensates for procurement time, carrying costs, and the risk of price changes. Never pass materials through at cost — the markup is a legitimate part of your business model, not price gouging.
How much should I charge for an emergency call?
Emergency or after-hours calls typically charge 1.5–2x your standard rate plus a service fee ($75–$150). HVAC and plumbing emergency rates in 2026 commonly run $150–$225/hour with a minimum 1-hour charge plus the emergency premium.