Tradie hourly-rate calculator based on real working capacity
Your charge-out rate has to recover more than the wage for the hour you are physically on the tools. This calculator spreads annual owner pay, overheads and a target operating profit across realistic billable hours.
Inputs
This simple model treats the entered owner-pay target and overheads as annual amounts that must be recovered from billable hours before the selected operating-profit percentage is added.
Calculated result
Annual billable hours
1,288
Cost-recovery rate
$104.81/hr
Indicative charge-out rate
$120.54/hr
Revenue target
$155,250.00
When this is useful
Useful for sense-checking whether an hourly labour rate can support non-billable time, vehicles, software, insurance, administration and desired business profit.
Important
This is a planning model, not accounting advice. Adjust inputs to your actual business and confirm tax, payroll and financial assumptions with your adviser.
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