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Ana is an electrician in Zaragoza. She is out of the house at seven and back at six, but only about half of that is work anybody pays her for: the rest is driving between jobs, queueing at the wholesaler, writing quotes and going back to a flat whose owner was not in. She runs a van, carries her own tools and insurance, and wants 2.200 € a month for herself.

Wants to keep2.200 € a month, net
Business expenses14.000 € a year: van, fuel, insurance, tools, gestor
Working day9 hours, 5 days a week
Billable55 % of that
Time off22 days holiday, 12 bank holidays, 8 sick
ComunidadAragón

She has to invoice 52.254 € over the year, of which 14.000 € leave her pocket immediately, and she has 1.079 billable hours to earn the money.

Her rate: 48,42 € per billed hour.

A customer hearing that thinks she earns 48,42 € an hour. Run the same year with a desk worker's costs instead of a van's, 2.000 € rather than 14.000 €, and the rate falls to 37,30 €. So roughly 11,12 € of every hour she bills is the van, the tools and the insurance driving themselves to your door. It is not margin, and it is the part of the bill that is hardest to see from the other side of it.

Open the calculator with Ana's figures