Free calculators / Hourly rate
Hourly rate calculator
The minimum hourly rate you need to charge to pay yourself, put away super and cover your business costs.
Result
Minimum hourly rate (before GST)
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- –
- Day rate (8 billable hours)
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- You need to bring in a year
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- Billable hours a year
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| Share billed | Hours a year | Rate needed |
|---|---|---|
| 50% | – | – |
| 55% | – | – |
| 60% | – | – |
| 65% | – | – |
| 70% | – | – |
| 75% | – | – |
| 80% | – | – |
How it's worked out
Hourly rate = (pay + super + business costs) × (1 + buffer) ÷ billable hours
Billable hours = (52 − weeks off) × hours a week × share you can bill
With the example figures: ($85,000 + 12% super + $28,500) × 1.1 = $136,070 to bring in. 46 working weeks × 45 hours × 65% = 1,345.5 billable hours, so the minimum rate is about $101 an hour before GST.
Common questions
- Why is it so much more than a wage?
- An employee is paid for every hour, including leave, and their employer pays the super and the costs. You only earn when you're billing, and you pay your own super, leave and running costs.
- What share of my hours can I bill?
- Most tradies and freelancers bill somewhere between 50% and 75% once quoting, travel, admin and ordering are counted. The table shows how much that changes the rate.
- Does this include income tax?
- The pay figure is before income tax, the same as a salary, so tax comes out of it. The rate is before GST; if you're registered, add 10% when you charge it.