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Home care rate calculator for agencies

For small non-medical home care agencies: set a private-pay hourly bill rate from what you pay caregivers, your payroll costs, unbillable travel and agency overhead, then compare it with the national median.

Example filled in: an agency paying caregivers $18 an hour and billing 400 client hours a month (worked example 1 below). Non-medical care only (personal care, companionship, homemaking): skilled home health care is priced and regulated differently.

Caregiver cost

The BLS median for home health and personal care aides was $17.21 an hour (May 2025).

Example: replace with your own. Employer Social Security and Medicare are 7.65% (IRS); state unemployment insurance and workers’ compensation vary by state. Ask your payroll provider and insurer.

Agency costs

Example: replace with your own. Office staff, scheduling software, insurance, licensing, training, marketing and rent.

Example: replace with your own. Hours you invoice clients for, across all caregivers.

Hours you pay caregivers for but can’t bill. Enter 0 if you don’t pay for travel time.

IRS business rate from July 1, 2026.

Profit as a share of the rate. 15% margin = cost ÷ 0.85.

Quote a client (optional)
Quote a client (optional)

Used only for the printed quote: your bill rate × these hours.

Your cost per billable hour

$28.20

The lowest price to accept. Below this, the job loses money.

Your private-pay bill rate

$34.00 · $13,600 a month at your billable hours

Your cost per billable hour plus your margin, rounded up to the next $1. For private-pay clients: Medicaid and other programs set their own rates.

  • Gross profit per billable hour$5.80
  • Margin on each hour17%
  • CareScout 2025 national median, non-medical care, per hour$35.00

Your rate ($34.00) is below CareScout’s 2025 national median of $35.00 an hour for non-medical home care. Check private-pay rates in your area before you settle on it.

How the numbers are worked out
Caregiver wage$18.00
Payroll costs: 15% of wages$2.70
Overhead: $3,000 a month ÷ 400 billable hours$7.50
Paid travel time: 0 h a month × $20.70 ÷ 400 h$0.00
Mileage: 0 mi a month × $0.76 ÷ 400 h$0.00
Cost per billable hour$28.20
÷ (1 − 15%) before rounding$33.18
Your bill rate (rounded up to $1)$34.00

How it works

The method, step by step

Market rates tell you the ceiling. Your costs tell you the floor. Every number above is an example: replace it with your own.

  1. Loaded caregiver cost

    Caregiver wage × (1 + employer payroll costs). Payroll costs include the employer’s 7.65% Social Security and Medicare plus state unemployment insurance and workers’ compensation, which vary by state.

  2. Overhead per billable hour

    Monthly agency overhead (office staff, scheduling software, insurance, licensing, training, marketing) ÷ the client hours you bill each month.

  3. Unbillable travel

    If you pay caregivers for travel time between clients or reimburse mileage, the monthly totals are spread over your billable hours too. The total is your cost per billable hour.

  4. Margin and the median

    Bill rate = cost ÷ (1 − margin), rounded up to the next $1. A 15% margin means dividing by 0.85. Then compare with CareScout’s 2025 national median of $35 an hour and with local private-pay rates.

Example: replace with your own

These inputs in the calculator and the worked examples have no published source behind them. Use your own numbers.

  • Payroll costs: 15% of wages (at least 7.65% is employer Social Security and Medicare; the rest varies by state)
  • Agency overhead: $3,000 a month
  • Billable client hours: 400 a month
  • Caregiver wage ($18 an hour) and margin (15%) are choices, not market figures

Worked examples

3 bill rates, worked out with this calculator

Each example is worked out by the calculator above, with the same formula. Open one to see every line, then change it to your own numbers.

  1. Example 1

    Agency billing 400 hours a month

    The example filled in above: caregivers paid $18 an hour, 15% payroll costs, $3,000 a month of agency overhead over 400 billable hours, no paid travel and a 15% margin.

    Your cost per billable hour
    $28.20
    Your private-pay bill rate
    $34.00$13,600 a month at your billable hours
    Gross profit per billable hour
    $5.80
    Margin on each hour
    17%
    CareScout 2025 national median, non-medical care, per hour
    $35.00

    Your rate ($34.00) is below CareScout’s 2025 national median of $35.00 an hour for non-medical home care. Check private-pay rates in your area before you settle on it.

    The rate lands just under CareScout’s national median, so the calculator suggests checking local private-pay rates.

    Open example 1 in the calculator
  2. Example 2

    The same agency, paying for travel

    The agency also pays caregivers for 40 hours of travel between clients and reimburses 1,200 miles a month at $0.76.

    Your cost per billable hour
    $32.55
    Your private-pay bill rate
    $39.00$15,600 a month at your billable hours
    Gross profit per billable hour
    $6.45
    Margin on each hour
    17%
    CareScout 2025 national median, non-medical care, per hour
    $35.00

    Travel nobody can bill adds its cost to every client hour.

    Open example 2 in the calculator
  3. Example 3

    Larger agency, more hours to share overhead

    Caregivers paid $20 an hour, $12,000 a month of agency overhead (more office staff) over 2,000 billable hours. Same payroll costs and margin, no paid travel.

    Your cost per billable hour
    $29.00
    Your private-pay bill rate
    $35.00$70,000 a month at your billable hours
    Gross profit per billable hour
    $6.00
    Margin on each hour
    17%
    CareScout 2025 national median, non-medical care, per hour
    $35.00

    Four times the overhead over five times the hours: each client hour carries less of it, which leaves room for higher caregiver pay.

    Open example 3 in the calculator

Market rates

Home care rates and costs in 2025–2026

CareScout’s figure is a national median of what families pay; rates vary a lot by state and city. CareScout now combines homemaker and home health aide services as “non-medical caregiver”. Check private-pay rates in your area.

WhatRangeSource
Non-medical caregiver services, national median$35 an hour (2025), up 3% from 2024CareScout (Genworth)
Home health and personal care aides, median wage$17.21 an hour (May 2025)U.S. Bureau of Labor Statistics
Employer Social Security tax6.2% of wagesIRS
Employer Medicare tax1.45% of wagesIRS
Business mileage rate76 cents a mile (from July 1, 2026)IRS

Sources

  1. CareScout (Genworth): CareScout Releases 2025 Cost of Care Survey Results (page dated Mar 2, 2026; read Nov 8, 2026)
  2. U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics, May 2025: home health and personal care aides (31-1120), median $17.21 an hour (May 2025 estimates, released May 15, 2026; median read through the BLS public data API; read Nov 8, 2026)
  3. IRS: Topic no. 751, Social Security and Medicare withholding rates (page dated Sep 24, 2026; read Nov 8, 2026)
  4. IRS: Standard mileage rates (76 cents a mile for business use from July 1, 2026; read Nov 8, 2026)

Cost guides publish estimates from their own marketplace or listing data, not audited statistics. US figures only.

Questions

Pricing questions

How much do home care agencies charge per hour?

CareScout’s 2025 Cost of Care Survey puts the national median for non-medical caregiver services at $35 an hour, up 3% from 2024. Rates vary widely by state and city, so check what agencies near you charge for private-pay clients.

What should I pay caregivers?

The BLS median for home health and personal care aides was $17.21 an hour in May 2025. Local wages, minimum-wage laws and competition for staff will set your real number; pay enough to keep good caregivers, then price from it.

What payroll costs should I add on top of wages?

At least the employer’s 7.65% for Social Security and Medicare (IRS), plus state unemployment insurance and workers’ compensation, which vary by state and by your claims history. The 15% in the example is a placeholder: ask your payroll provider and insurer for your real figure.

Do I need a license to run a home care agency?

In many states, yes, even for non-medical care, and rules differ on training, background checks and the services you may offer. Skilled home health care is licensed separately. Check with your state health department before you take clients.

Can I use this rate for Medicaid clients?

No. This calculator sets a private-pay rate. Medicaid programs and other payers set their own rates, which differ by state; compare them with your cost per billable hour to see whether a contract covers your costs.

How do I account for travel between clients?

If you pay caregivers for travel time between clients, or reimburse their mileage, enter the monthly totals. The calculator spreads them over your billable hours, so every client hour carries its share.