Raise Rates or Hire Calculator
The decision most contractors get wrong: raise rates or hire a sub? Compare revenue per hour of your time for both paths — with sub margin analysis, capacity utilization, and a recommendation based on your actual numbers.
Current State
Option A — Raise Rates
Option B — Hire / Subcontract
You're close to capacity (80%). Consider a hybrid: raise rates on new clients while testing subcontracting on lower-value work. Both paths improve your revenue per hour of personal time.
Break-even sub rate: at $40.00/hr for the sub, Option B net revenue equals Option A revenue. Your sub rate is above break-even — raising rates currently wins.
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