Most tradies undercharge because they price off their wage, not their costs. Plug in your numbers to find the hourly rate that actually keeps the business profitable.
Set this as your labour rate in the traqR price book and every quote prices the job right — automatically, with your margin built in.
Start free trialYour wage plus every overhead — vehicle, insurance, tools, super, software and admin — is what the business actually costs to run each year.
Only the hours you invoice pay the bills. Spreading cost across realistic billable hours (not a 40-hour week) gives your true break-even rate.
We gross the rate up so your target profit margin is left after wages and overheads are paid — that’s the number to put on a quote.
Because your wage is only one cost. Vehicles, insurance, tools, super, downtime, quoting and admin all have to be paid out of billable hours. A rate that only covers wages leaves nothing for overheads or profit — which is why so many tradies feel busy but broke.
Only the hours you actually invoice a customer for. Travel, quoting, chasing payments, paperwork and downtime usually aren’t billable, so a full-time tradie often bills 25–32 hours a week, not 40. Using a realistic number is the single biggest factor in getting your rate right.
No. Work out your rate excluding GST, then add 10% GST on top when you invoice if you’re registered. Use our GST & BAS calculator for that part.
No — this is your charge-out (sell) rate to customers, not a wage. Minimum pay rates for employees are set by the relevant Fair Work modern award; this tool helps you price the job so the business is sustainable.
This calculator is a general guide to help you price work, not financial or tax advice. Figures are indicative and depend on your own costs, utilisation and market. Check your obligations with your accountant and the relevant Fair Work award.
Save your rate in the traqR price book and every quote prices labour and materials with your margin built in. Try it free for 14 days.