Charge Out Rate Calculator

Most tradies underprice their work because they only think about their wage, not the real cost of running a business. This calculator factors in everything: super, insurance, vehicle, tools, admin time and your profit target. Fill it in and know your number.

per hour (inc. GST)

Per day (8hrs)

Per week

Annual revenue target

Est. take-home pay

Your wage

Desired annual salary What you want to pay yourself

Superannuation 11.5% Currently 11.5% in Australia

Business overheads (annual)

Public liability insurance Typical: $1,500 to $3,000/yr

Vehicle costs Rego, fuel, maintenance

Tools and equipment Purchase, hire, maintenance

Phone and software Mobile plan, job management app

Accounting and admin Bookkeeper, accountant, BAS

Other overheads Marketing, licences, PPE, etc.

Profit and hours

Profit margin 15% What you want to make on top of costs

Billable hours per week 30 hrs Non-billable time includes travel, quoting and admin

Cost breakdown

Annual salary$80,000

Superannuation$9,200

Total overheads$19,500

Profit margin$16,305

Billable hours per year1,560 hrs

Rate needed (ex. GST)$0/hr

Rate to charge (inc. GST)$0/hr

Heads up

Your billable hours are set quite high. Most sole traders realistically bill 25 to 35 hours per week after travel, quoting and admin. Overestimating billable hours means undercharging.

Why most tradies underprice their work

The most common mistake is calculating a charge-out rate based only on your desired wage. That ignores everything it actually costs to run a business.

If you want to take home $80,000 a year, you need to charge enough to cover your salary plus super, plus insurance, vehicle costs, tools, software, accounting fees and every other business expense. On top of that you need a profit margin, otherwise you are running a job not a business.

Example

A tradie who wants to take home $80,000 and works 30 billable hours per week needs to charge around $75 to $85 per hour just to break even, before profit.

Most tradies charging $60 to $65 per hour are effectively working for less than minimum wage once costs are factored in.

What to factor into your rate

Your salary. What you actually want to pay yourself, not what you hope to clear after costs.
Superannuation. Currently 11.5% on top of your salary. This is a real cost.
Vehicle. Rego, fuel, servicing and depreciation. For most tradies this is $8,000 to $15,000 per year.
Insurance. Public liability, tools insurance, income protection. Do not skip income protection.
Tools and equipment. Purchase, hire, repairs and replacement. Spread over the year.
Software and phone. Job management software, accounting software, mobile plan.
Accounting and admin. Bookkeeper, accountant, BAS preparation.
Profit margin. This is not your wage. This is what the business makes on top of costs. Without it you cannot invest in growth, handle slow periods or build any financial buffer.

Billable hours: the number most tradies get wrong

If you work a 45-hour week, you are not billing 45 hours. Travel to and from jobs, quoting, admin, phone calls, chasing invoices and supply runs all eat into billable time.

Most sole traders realistically bill 25 to 35 hours per week. Set your billable hours too high and your rate looks fine on paper but leaves you short in reality.

The difference between 40 billable hours and 30 billable hours per week is roughly $15 to $20 per hour on your required charge-out rate. Get this number wrong and you are undercharging every single job.

How often should you review your rate?

At minimum, review your charge-out rate every 12 months. More often if your costs change significantly. Insurance premiums go up. Fuel costs change. Software subscriptions increase. Your salary expectations change as the business grows.

Most tradies who have not reviewed their rate in two or more years are undercharging. Run the calculator with your current actual costs and see where you land.