Enter your costs and profit target to find the exact hourly charge-out rate you need to run a profitable trade business. Includes GST, benchmark rates by trade, and annual profit projection.
Your salary or owner drawings + any employee wages (per person)
Vehicle costs, insurance, tools, phone, software, advertising, rent — everything except wages
Actual time working on jobs (excluding travel, admin, quoting, public holidays, leave)
Your charge-out rate (excl. GST)
$128/hr
$141/hr incl. GST (what you tell the customer)
✓ In line with market
Typical plumber rates in Australia: $90/hr – $160/hr (avg $120/hr). Your rate is competitive for the market.
Tips for setting your rate
Setting the right charge-out rate is one of the most important decisions you'll make as a trade business owner. Too low and you work hard for no profit. Too high and you lose work. Here's how to calculate it properly.
Where total costs = wages/drawings + overheads. If your costs are $120,000/year, you work 1,200 billable hours, and you want a 25% margin: ($120,000 ÷ 1,200) ÷ 0.75 = $133/hr.
Billable hours are the hours you actually work on jobs for clients. A standard year has about 2,000 working hours, but after subtracting travel time, quoting, admin, public holidays, leave, and unbillable time, most sole-trader tradies have 1,000–1,400 truly billable hours. Use 1,200 as your starting point if you're unsure.
Most trade business advisers recommend targeting 20–30% net profit margin. Below 15% is considered thin — it leaves no buffer for slow periods, growth or unexpected costs. Above 35% is excellent and usually indicates strong pricing discipline.
If your annual turnover exceeds $75,000, you must register for GST and add 10% to your prices. The rate shown in this calculator is exclusive of GST — your invoices should show the GST-inclusive amount (your rate × 1.1).
ProfitLens connects to your Xero, simPRO or ServiceM8 account and shows you exactly which jobs, customers and job types are hitting your target margin — and which aren't.
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