How to Price Jobs as a Solo Contractor: The Complete 2026 Guide

Most solo contractors charge $50 to $85 an hour when the arithmetic says $75 to $150. General contractor rates run $75 to $125 typically, and $85 to $150 is needed to net around $90,000 after overhead and taxes. The error is pricing against an employee wage instead of a business: a one-person operation has less total overhead but far more overhead per billable hour, because it is spread across roughly 1,200 hours instead of 18,000.

Three numbers drive everything: target take-home pay, true annual overhead, and real billable hours. Only 50 to 70 percent of worked hours are billable, so most solos bill 1,000 to 1,400 hours a year and 20 to 30 hours a week despite working 2,000-plus. Overhead rate equals monthly overhead divided by monthly billable hours, for example $4,000 divided by 120 hours equals $33.33 an hour before any pay.

The formula is (target salary plus overhead) times (1 plus profit margin) divided by annual billable hours: ($100,000 + $20,000) x 1.10 / 1,500 = $88 an hour. Of every $100 billed, roughly $25 to $33 reaches the owner, $12 to $15 goes to employment taxes, $8 to $10 to insurance and licensing, $10 to $15 to vehicle and equipment, $15 to $20 to overhead, and $15 to $25 to profit.

Going from W2 to 1099 requires a 1.25x multiplier minimum and 1.4 to 1.5x realistically. Use flat rate for predictable work because hourly penalizes speed, hourly only for genuine unknowns, day rates for project trades, and premium pricing for emergencies. Set a minimum charge of $100 to $200 or one hour plus trip cost.

Mark materials up 15 to 35 percent and take deposits on material-heavy jobs. Target 20 to 30 percent profit as a separate line from your own wage. Self-employment tax is 15.3 percent on net profit; 2026 quarterly dates are April 15, June 16, September 15, and January 15, 2027. Raise prices annually, give existing clients 30 days notice, and raise worst-fit clients first..