Calculate a billable labor rate that covers wages, payroll burden, tools, insurance, and non-billable windshield time.
Free to use with no account. When you want to send the result by text, take a card payment, or keep a record of every job, the same numbers carry straight into Glo Invoice.
What goes into a billable labor rate. Base wage, payroll burden (employer taxes, workers' comp, benefits), tools and truck, insurance, and the non-billable hours you still pay for.
Worked example. A tech paid $30/hour with roughly 25% burden costs about $37.50/hour. Add truck, tools, and insurance and the break-even is often $55–$65 before any profit — which is why billing at $65 can still lose money.
Billable efficiency is the lever. Raising billable hours from 55% to 70% of paid hours does more for profit than a small rate increase, and customers never feel it.
Common mistakes. Using the wage as the rate; forgetting workers' comp class rates for trade work; not charging for callbacks caused by customer-supplied parts.
Frequently asked questions
Is a labor rate the same as an hourly rate?
A labor rate is what you bill for a worker's time. An owner's hourly rate also has to cover profit and every unpaid hour of running the business.
Should the customer see my labor rate?
Show labor as a line with hours and rate. Itemized labor is easier to defend than a lump sum, and most states need it separated for tax anyway.
How do I handle overtime or after-hours calls?
Set a published after-hours multiplier and put it in your written terms before the call, not on the invoice afterward.
