Pricing for electricians
How much should an electrician charge per hour?
Once you work for yourself, your hourly rate carries your pay plus everything a shop used to cover for you. Here's how to set it.
Short answer: a solo electrician who wants to earn $63,190 a year, what an electrician on a W-2 paycheck typically makes, needs about $79 per billable hour with our starting numbers, or $67 to break even. Change the calculator to match your costs and your market.
Electrician hourly rate calculator
Wage vs. rate: where the difference goes
The national median wage for an electrician on payroll is $30.38 an hour (May 2025). Your billed rate has to be much higher because it also pays for:
- Unbilled time: estimates, permit pulls, inspections you wait on, supply runs and billing.
- The shop: van, tools and testers, liability insurance, licensing and continuing education, software and advertising.
- Payroll tax on both sides: self-employment tax is 15.3% on most earnings; an employee pays 7.65%.
- Benefits and slow seasons: health insurance, retirement, and the weeks when the phone is quiet.
The formula
- Yearly costs = your pay + self-employment tax + business costs + health insurance + helper costs.
- Billable hours = weeks worked × billable hours per week × people billing (you plus any helpers).
- Break-even rate = yearly costs ÷ billable hours.
- Your rate = break-even ÷ (1 − profit %).
Wire, devices and panels are billed on top of labor, usually with a markup.
Service calls vs. bid work
On service calls you usually charge a trip or diagnostic fee plus time, and the hourly rate above applies directly. On bid work, such as a panel upgrade or a remodel, you estimate the labor hours, multiply by the same rate, and add materials. Both start from the same number, which is why it's worth getting right.
Questions electricians ask
Should an apprentice's hours be billed at my rate?
Some shops bill a lower rate for apprentice hours. Either way, the apprentice's full cost, including employer payroll tax and workers' comp, has to be covered. Add them as helpers in the calculator to see what that does to your number.
How many billable hours a week is realistic?
It depends on how much time goes to quoting, permits and driving. Track a few weeks and use the real figure. The calculator starts at 30.
Is income tax included?
No. Your pay is before income tax, like a salary.
Sources
- Electrician wages: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, occupation 47-2111 "Electricians" (bls.gov).
- Self-employment tax: IRS, Self-Employment Tax (Social Security and Medicare Taxes).
- Business costs, health insurance, helper extras and billable hours are starting guesses, marked in the calculator. Replace them with your own.