Tradie hourly rate calculator
Most tradies undercharge because they price off a gut feel instead of the numbers. Punch in what you want to take home, your overheads and your billable hours, and this works out the charge-out rate you actually need. Nothing to sign up for.
Pre-GST. If you are registered for GST, add 10% on top. This is the rate that keeps the lights on, not a luxury rate.
How the rate is worked out
It is one honest sum: the money your business has to bring in, divided by the hours you can actually bill.
- Money to bring in = the take-home income you want plus your yearly overheads.
- Billable hours a year = billable hours per week times the weeks you work.
- Charge-out rate = money to bring in divided by billable hours.
The number that surprises most people is the billable hours. A full-time week looks like 38 hours, but quoting, driving between jobs, chasing materials, invoicing and paperwork are not billable. If only 30 of those hours end up on an invoice, those 30 hours have to carry the whole business, which is exactly why your charge-out rate looks higher than an employee's wage.
Getting your inputs right
- Overheads are easy to underestimate. Add up tools and replacements, the ute and fuel, insurance, phone, software subscriptions, accountant fees and any rent. Most sole traders land somewhere north of $20,000 a year.
- Billable hours should be honest, not hopeful. Track a normal fortnight and see how many hours actually made it onto an invoice.
- Weeks worked is rarely 52. Take out annual leave, public holidays and the odd sick day and most trades work around 46 to 48 weeks.
Once you know your rate, use it every time
Knowing your number is half the job. The other half is not caving on it when you are quoting on the spot. That is where a price list you can lean on helps: quote from set rates, not from a gut feel at the kitchen table. ServicePilot keeps your rates in one place and the AI drafts a priced quote from a plain-English description of the job, so the number that lands in front of the customer is the number you actually need to charge.
Common questions
How do I work out my hourly rate as a tradie?
Add the take-home income you want plus your yearly business overheads, then divide by your billable hours for the year (billable hours per week times the weeks you work). That is your charge-out rate before GST.
Why is my charge-out rate higher than what I "earn" per hour?
The rate has to cover overheads, unpaid time spent quoting and travelling, tax and super. Only some of your week is billable, so the billed hours carry the whole business.
Should I add GST?
If you are registered for GST, add 10% on top of the rate here. The calculator works in pre-GST dollars.
Quote at the right rate, every time
ServicePilot's AI drafts priced quotes from your own rates, then runs the job through to getting paid. 14 days free, no card.
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