Free toolsHourly rate calculator
Hourly Rate Calculator for Tradies and Small Businesses
Most tradies and small business owners price a job by looking at what the competition charges. Then they wonder why they are busy and still short of cash. This calculator works backwards from what you actually need to earn, so your rate covers your pay, your costs, your super, your tax and all the time you cannot bill.
Hourly rate AU$119, day rate AU$951
Your minimum rate
AU$119
per hour
The lowest rate that covers your pay, costs, super and tax across the hours you can bill.
AU$951
per day
Eight billable hours at that rate.
What if I bill 10% more of my time? At 75% billable the rate drops to AU$103 per hour.
- Required income
- AU$160,000
- Billable hours a year
- 1,346
Estimates only. Check the numbers with your accountant.
01
How this calculator works
It starts with the money you want to take home. It adds your business costs and super, then grosses it up to cover tax. It then divides that by the hours you can realistically bill after leave and admin time. The answer is the minimum rate that keeps your business healthy.
02
Why your billable hours are lower than you think
Quoting, driving, ordering materials, chasing invoices and answering the phone are all real work. None of them gets paid by the hour. Most people can bill somewhere between 50 and 70 per cent of the hours they work. Be honest with that number, because it moves your rate more than anything else.
03
Questions
Add up the pay you want, your business costs and your super, allow for tax, then divide by the hours you can actually bill in a year. This calculator does that for you.
It varies by trade and how much of your day goes on travel and admin. Many sole traders land between 50 and 70 per cent. Start at 65 and adjust to match your own diary.
If you are registered for GST you charge it on top of your rate and pass it on to the ATO. Switch the GST toggle on to see both figures.
No. It is a guide to help you price your work. Speak to your accountant about tax and super for your own situation.
Want the quoting and invoicing to take care of itself?
I build bespoke systems for trades and service businesses: websites, dashboards, quoting and follow-up that run without you chasing. See what I built for Purified Group.