Free tool · Pricing
What should you actually charge per hour?
Most trade businesses quote off a number they half-remember. This works out the rate you genuinely need to charge to cover wages, on-costs, and overheads and make a real margin — for a solo operator or a full team. No sign-up to see your result.
Charge-out rate calculator
Your numbers
Your minimum charge-out rate
$118 / hr
- Team billable hours / yr
- 1,380
- True cost / hr
- $94
- + 20% target margin
- $118
Want it turned into a real rate card?
An estimate to guide your pricing, not financial advice. Rates are GST-exclusive. Confirm specifics with your accountant.
Questions
How the numbers work.
How do you calculate a charge-out rate?
Work out your true cost per billable hour — your target take-home plus wages, on-costs, and overheads, divided by the hours your team can actually bill in a year — then add your target margin. The result is the minimum rate you need to charge to cover everything and still make a profit.
What are on-costs and why do they matter?
On-costs are the extra employment costs on top of an employee's base wage: superannuation, paid leave and public holidays, workers' compensation, and payroll tax once you cross the threshold. They typically add 20–30% to a wage. Leave them out and you understate your real labour cost and undercharge.
What's a realistic non-billable time percentage?
For most trade businesses, 20–35% of paid hours go to quoting, admin, travel, and downtime that you can't bill a customer for. Being honest about this is what separates a real cost-per-hour from a fantasy one.
Does this use markup or margin?
Margin. The rate is your cost per hour divided by (1 − target margin), so a 20% target margin means 20% of the final rate is profit. That's different from adding a 20% markup to cost, which leaves a smaller margin.
Is the rate GST inclusive?
No. The rate is exclusive of GST. Add GST on top when you quote, the same way you would for any other charge.
From a number to a rate card
Knowing the rate is step one. Charging it is the work.
Book a thirty-minute pricing call. We’ll pressure-test your numbers and map how to move your rate without losing the jobs you want, whether or not you work with us.