Charge-Out Rate Calculator
Just started out on your own? Work out the hourly rate you need to charge to cover your costs, pay yourself properly, and still make a profit. Built for New Zealand tradies.
Your numbers
Change any figure — your rate updates instantly. Defaults are typical for a solo NZ tradie.
How your charge-out rate is worked out
The rate you charge per hour has to do a lot of work. It isn't just your wage — it has to cover the cost of running your business and leave something over as profit, all spread across the limited number of hours you can actually bill. This calculator uses a simple, honest formula:
- Add up what you need for the year — the pay you want to take home plus your business costs.
- Add a profit margin so the business isn't just breaking even.
- Divide by your billable hours — the hours per week you can charge for, times the weeks you actually work.
The result is the minimum you should charge, excluding GST. Charging less means you're effectively paying to work.
Don't forget the hours you can't bill
The most common mistake new tradies make is assuming a 40-hour week is 40 billable hours. In reality, quoting, travelling between jobs, buying materials, chasing payments and doing paperwork all eat into your week. If only 30 of every 40 hours are chargeable, your rate has to be higher to make up for it.
A note on GST
Quote and advertise your rate excluding GST, then add 15% on top if you're GST-registered. In New Zealand you must register for GST once your turnover passes $60,000 in any 12-month period.
Charge-out rate FAQ
What is a charge-out rate?
It's the hourly rate you bill customers for your labour. It covers your take-home pay, your overheads (vehicle, tools, insurance, ACC, admin), and a profit margin — spread across only the hours you can bill.
Why is my charge-out rate higher than an hourly wage?
Because you can't bill every hour you work, and your rate also covers overheads and time off. A rate two to three times a comparable employee wage is normal for a self-employed tradie.
How often should I review it?
At least once a year, and any time your costs jump — a new vehicle, higher insurance, or rising material prices. Re-run the numbers and adjust.
Now put that rate to work
TradeStart lets you build professional quotes and invoices at your new rate, add GST automatically, and get paid faster — free for your first jobs.
Start your free trial Try the live demoThis calculator is a general guide for New Zealand sole traders and small trade businesses, not financial or tax advice. Figures are estimates — talk to your accountant about your specific situation, tax and ACC levies.