Shop Hourly Rate Calculator

Monthly Overhead
$
$
$
$
$
Include your own salary if you work in the shop.
Capacity & Efficiency
Low (10%) 75% Efficiency Perfect (100%)
Accounts for setup time, maintenance, and material handling.
Break-Even Rate
$0.00
Per billable hour
Target Shop Rate
$0.00
Per billable hour
Total Monthly Overhead: $0.00
Billable Hours / Month: 0.0 hrs
Business Intelligence

Knowing your shop's "Burn Rate" is the difference between growing and going out of business. Many small shops fail to account for Efficiency and Benefits.

The Efficiency Trap

If you work 8 hours but only 6 hours are spent making chips (the rest is setup, tool shopping, or cleaning), your efficiency is 75%. You must charge enough in those 6 hours to pay for all 8.

Calculation Logic:
  • Total Cost: Sum of all monthly expenses.
  • Billable Hours: Days × Hours × Efficiency.
  • Break-Even: Total Cost ÷ Billable Hours.
  • Target Rate: Break-Even ÷ (1 - Margin%).
Pro Tip: Re-calculate your shop rate every 6 months to account for rising tooling and electricity costs.