Hourly rate: definition, example, and why it matters
Should cover wage + burden + overhead + profit. Most trades land between $75 and $200/hr. Use a labor rate calculator to derive yours from your numbers.
Short definition. The price a contractor charges per hour of work.
Category. Hourly rate is a trades term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds hourly rate into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does hourly rate mean?
Should cover wage + burden + overhead + profit. Most trades land between $75 and $200/hr. Use a labor rate calculator to derive yours from your numbers.
Related terms
Labor rate — The hourly rate billed for skilled labor — distinct from a tech's actual wage.
Billable hours — Time spent on work the customer can be charged for.
Flat-rate pricing — Charging a fixed price for a job regardless of how long it actually takes.
