Quick definition: Your monthly business overhead divided by the number of billable hours you actually work — the dollar amount every billable hour must cover before you make any profit.
Overhead per billable hour is the most important number most solo contractors never calculate. It tells you, in dollars, how much every hour you bill needs to cover just to keep your business running — before you make any profit or pay yourself.
The formula: Monthly overhead (truck payment + insurance + tools + software + phone + accounting + marketing + etc.) divided by your monthly billable hours (typically 60-75% of the hours you work).
Example: $4,500/mo overhead ÷ 120 billable hours = $37.50/hour overhead. That means every $1 of labor you bill at $75/hour, $37.50 goes to overhead — leaving $37.50 for your wage and profit. If you did not bake it in, you are losing money on every hour.
JobPricer asks you for your monthly overhead and your billable hours during onboarding, then automatically bakes the overhead-per-hour into every quote so your prices always cover it.