Form CMB-020 Planning
How Many Billable Hours Per Year
The most dangerous number in contractor pricing is 2,080. That is 40 hours multiplied by 52 weeks, and it represents a theoretical maximum that no contractor ever reaches. Start subtracting: weekends are already excluded. Now remove 10 federal holidays. Subtract 10-15 vacation days. Five sick days. Ten weather days if you work outdoors. Twenty days of administrative work, estimating, sales, marketing, bookkeeping, and phone calls that do not generate direct revenue. Five days for training and certification. You are down to roughly 195-215 billable days. Now multiply by productive hours per day. After drive time, supply runs, setup, cleanup, and lunch, most contractors bill 5-7 productive hours per day. The result: 1,000-1,500 billable hours per year, not 2,080. If you set your hourly rate assuming 2,080 hours, you are charging 30-50% less than you need to. This calculator does the subtraction for you.
✓ How It Works
This calculator simplifies complex pricing decisions into clear, actionable numbers. Enter your specific values using the fields above. Trade presets provide industry-standard starting points that you can adjust for your situation. Results update as you type, giving you instant feedback on how each variable affects your bottom line. Every calculation runs in your browser with no data sent to any server. Save your inputs locally for quick access on return visits.
The formulas used are standard business accounting calculations adapted for the contracting industry. They account for the unique aspects of trade work: seasonal variation, weather delays, variable material costs, and the difference between billable and non-billable hours that salaried workers never think about.
✓ When to Use This
Use this calculator when preparing bids for new work, reviewing your current pricing structure, or planning for business changes like hiring employees, adding equipment, or expanding to a new service area. Run the numbers before making commitments that change your cost structure. Contractors who check the math before signing a lease, purchasing a vehicle, or setting new rates consistently make better financial decisions than those who rely on instinct alone.
✓ Frequently Asked Questions
Why is 2,080 hours unrealistic for contractors?
2,080 represents 40 hours times 52 weeks with zero deductions. Real contractors lose time to holidays (10 days), vacation (10-15 days), sick time (5 days), weather (5-15 days for outdoor trades), training and certification (3-5 days), and administrative activities (estimating, invoicing, marketing, sales calls) that consume 15-25% of work time. After these deductions, the available pool shrinks to 195-215 days. Multiply by 5-7 productive hours per day and you reach 1,000-1,500 billable hours.
What is a realistic billable hours target by trade?
Plumbers (service-call): 1,100-1,300 hours. Electricians (residential): 1,200-1,400 hours. HVAC: 1,000-1,200 hours (seasonal impact). Painters: 1,300-1,500 hours (high field time ratio). Landscapers: 1,100-1,400 hours (seasonal). Roofers: 1,000-1,300 hours (weather dependent). Trades with higher drive time between jobs (plumbing, HVAC) tend toward the lower end. Trades where you stay on one job for days (painting, roofing) tend higher.
How do I track my actual billable hours?
Use a simple time tracking method: log start and stop times for each job daily, including drive time as a separate category. After one month, you will have a realistic picture of your billable-to-total ratio. Many contractors find that they bill 60-75% of their total working hours. The rest goes to driving, estimating, supply runs, admin, and other non-revenue activities. This ratio, multiplied by your working days and hours per day, gives your annual billable hours.
How do weather days affect billable hours?
Outdoor trades (roofing, painting, landscaping, some electrical and plumbing) lose 5-20 billable days per year to weather depending on location. Southern US contractors lose fewer days but face extreme heat shutdowns in summer. Northern contractors lose winter days to cold and ice. Coastal areas lose days to wind and rain. Build weather deductions into your annual planning based on your actual location and trade. Tracking weather days for one year gives you a reliable planning number for future years.
Should drive time between jobs count as billable hours?
It depends on your pricing model. Under hourly billing, most contractors do not charge separately for drive time but build it into their rate by using realistic billable hours (which exclude drive time). Under flat rate pricing, drive time is embedded in the flat rate since the client pays per job regardless of distance. Some contractors charge a trip fee for distant jobs. The key is consistency: if you exclude drive time from billable hours, make sure your hourly rate calculation also excludes it so the math balances.