Charge-out rate calculator
The hourly rate that covers wages, super, overheads and a margin. Free, no sign-up.
Example Change any number and press Work it out.
$116 including GST, for a 25% margin.
| Wages and super a year | $84,000 |
| Overheads a year | $25,000 |
| Billable hours a year | 1,380 |
| Break-even rate (no profit) | $78.99 an hour |
| Of each hour, wages and super | $60.87 |
| Of each hour, overheads | $18.12 |
| Of each hour, profit | $26.33 |
| Margin | Rate inc GST | Ex GST | Profit a year |
|---|---|---|---|
| 15% | $102 | $93 | $19,235 |
| 20% | $109 | $99 | $27,250 |
| 25% | $116 | $105 | $36,333 |
| 30% | $124 | $113 | $46,714 |
| 35% | $134 | $122 | $58,692 |
| 40% | $145 | $132 | $72,667 |
One more billable hour a week is worth about $4,844 a year in revenue at this rate.
Billable hours are the ones you can charge for. Travel, quoting, admin and yard time aren't.
How the rate is worked out
Add up a year of what it costs to put a person on the tools: their pay, super and your overheads. Divide by the hours you can actually bill, not the hours they're paid. That gives your break-even rate, the price where every hour pays for itself and nothing more.
Then add your margin. A 25% margin means a quarter of the price is profit, so the rate is the break-even rate divided by 0.75, not multiplied by 1.25. Billable hours matter most: most trade businesses bill 60–80% of paid hours once travel, quoting and yard time come out.
Questions
Should I include my own wage?
Yes. If you're on the tools, put in what you want to earn. A rate that only covers staff leaves you working for free.
What counts as overheads?
Anything you pay whether or not a job happens: vehicle, insurance, phone, software, accountant, tools, rent, advertising.
Is this the same as markup?
No. A 25% margin is about a 33% markup on cost. The quote calculator shows both.
Every job, worked out for you
Tradies Sidekick reads your Xero and ServiceM8 and works this out every night from your own numbers: for every customer, every member of the team, and the business as a whole.
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