Tools Pricing

Hourly rate calculator for sole trader tradies

Work out what you need to charge per billable hour to cover a wage, super, your business costs and the time you can't bill. Every step of the working is shown under the result.

By The SortedTradie TeamFigures checked

All amounts are in Australian dollars, per year unless the label says otherwise. If you're registered for GST, enter costs without GST, because you claim that GST back. Nothing you type is sent anywhere or stored. To share or save your figures, use the link button under the result: your numbers go into the web address, and nowhere else.

1. Your wage

Starting figure: average full-time ordinary earnings in construction, $1,985.30 a week in May 2026 (ABS), times 52. Think of it as the wage you'd be paid as an employee, including paid leave.

The super guarantee employers pay is 12% from 1 July 2025 (ATO). Sole traders don't have to pay themselves super. You can choose to make personal contributions. Moneysmart's line on it: "You don't have to pay yourself super, but future you might be glad you did."

2. Business costs ($ a year)

Use last year's bank statements, renewal notices and your accountant's profit and loss if you have one. These start at zero because there's no reliable average to give you.

Starting rate: 91 cents a kilometre, the ATO's cents per kilometre rate for 2026-27. It's meant to cover fuel, rego, insurance, servicing, repairs and depreciation for a car. A ute or van that works harder can cost more, so use your own logbook figures if you have them.

Include the plan you pay for, not the trial price. Not sure what a job app costs for your crew? Our job app cost comparer works it out from the official price lists.

3. Your time

38 hours is the maximum ordinary week for a full-time employee under the National Employment Standards (Fair Work).

Starting guess, not a statistic: 8 hours, about one day a week. Track a fortnight of your own time and replace it.

Employees get 4 weeks of paid annual leave under the National Employment Standards (Fair Work).

Victoria has 10 public holidays on weekdays in 2026 (Business Victoria's list, counting Monday 28 December for Boxing Day). Other states differ.

Full-time employees get 10 days of paid personal/carer's leave a year (Fair Work).

Starting guess, not a statistic: 2 weeks. Look back over last year's invoices for the real figure.

4. Margin and GST

A buffer above your costs and wage, for bad debts, slow months and saving for the next ute. Leave it at 0 to see your break-even rate.

You must register for GST within 21 days of your GST turnover reaching $75,000 (ATO). If you're registered, the GST you charge goes to the ATO, so it isn't part of your income.

Your rate

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The working

  1. The steps appear here once the calculator has run.
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How the calculator works

Add up what the business has to pay for in a year, including your own wage, then divide it by the hours you can actually charge for. The second number is the easy one to get wrong. A 38 hour week isn't 38 billable hours once quoting, driving, ordering and paperwork are taken out, and holidays, public holidays, sick days and wet weeks come off the year.

  1. Super = income × super rate (if ticked).
  2. Vehicle = kilometres × cost per kilometre, plus other vehicle costs.
  3. Total to cover = income + super + insurance + tools + vehicle + phone and software + other overheads.
  4. Weeks you can work = 52 − holiday weeks − quiet weeks − (public holidays + sick days) ÷ 5.
  5. Billable hours a year = weeks you can work × (hours a week − hours you can't bill).
  6. Break-even rate = total to cover ÷ billable hours.
  7. Rate with margin = break-even rate × (1 + margin).
  8. Rate including GST = rate with margin × 1.1 (only if you're registered).

The result is a rate for your own labour. Materials, subcontractors and equipment hire are priced on top, job by job. It also ignores income tax: the income figure is before tax, the same way an employee's salary is quoted. If you want a take-home figure, work backwards from the ATO's tax rates, or ask your tax agent.

Where the starting figures come from

InputStarting figureSource
Income$103,236ABS Average Weekly Earnings, May 2026: construction, full-time adult ordinary time earnings $1,985.30 a week, × 52
Super rate12%ATO super guarantee percentage from 1 July 2025 (page updated 17 April 2026)
Vehicle cost per km$0.91ATO cents per kilometre rate for 2026-27 (page updated 12 August 2026)
Hours a week38Fair Work: maximum weekly hours under the National Employment Standards
Hours you can't bill8Our starting guess, not a statistic
Holiday weeks4Fair Work: 4 weeks of annual leave for full-time employees
Public holidays10Business Victoria: Victorian public holidays 2026, weekdays only
Sick and carer's days10Fair Work: 10 days of paid personal/carer's leave
Quiet weeks2Our starting guess, not a statistic
Business costs$0No reliable published average, so enter your own

Using the number

  • Compare it with what you charge now. If the break-even rate is above your current rate, you're paying to go to work on some jobs.
  • Price jobs, not just hours. Our guide to writing a tradie quote covers itemising labour and materials, allowances and variations.
  • Check your costs are complete. The tradie tax deductions guide is a good checklist of business costs you may have missed.
  • Get the setup right. If you're just starting, setting up as a sole trader covers the ABN, GST registration and putting tax money aside.
  • GST and BAS. Once you're registered, BAS and GST for tradies explains what you report each quarter.
  • Cut the hours you can't bill. A job app can save time on quoting, scheduling and invoicing. Compare them in ServiceM8 vs Tradify vs Fergus.

Sources we checked