Calculator
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Hourly Rate Calculator
This calculator is provided to help you determine your own hourly rate.
When using this calculator, it's important to be as close to the mark and as honest as you can.
The key is to ensure that you do not underestimate your expenses/costs and you do not overestimate the amount of hours you can charge for.
Your expenses, costs, earnings and profit should be covered in your base rate and standard hours.
Any overtime you choose to work, or savings you are able to make through efficiency or cost cutting should be a bonus and not a requirement to earn your base income.
How much do you want to earn?
Nominate the amount you want to earn before tax.
I want to take home $1,250 a week, before tax, so I'm gonna enter $65,000.
Earning Comparison
How much are you charging per hour now?
It'll be interesting to see how close I am to what I want to earn!
Billable Hours
How much will you work?
I've made the mistake of overestimating my billable hours before and it was a nightmare! I didn't realise how much time I lost with bad weather and site delays. 40 weeks at 40 hours works for me.
Non-billable Hours
How much will you work?
This is different for everyone: If you're working for multiple builders or private clients, your non-billable hours add up pretty quickly! But if you're full time subbying to one builder like me, you might find your answers are low or zero for these.
Non-billable Hours
Admin
I use my own hourly rate for this as I do my own admin. If I outsource later and make a saving, that's more dollars in my pocket.
If you're a subby but doing more than 80% of your work for one builder, you may be entitled to get your Super and Workers' Comp paid – check out the ATO website for more info. And if you're working for yourself but not paying your super, sort it out – you'll be glad you did!!
Your costs
Annual Expenses
If you're looking at reviewing your Trades Insurances, we recommend contacting our mates at IMAR. Common sense advice, great service and they always look after CA Members on price too.
This stuff adds up pretty quick, hey!
Your costs
Annual expenses (2)
It ain't easy being green… and it sure ain't cheap being a chippy either!
Your costs
Annual expenses (3)
… At least my CA membership is worth every cent!
Your costs
Annual Allowances
Think of these as a self-funded insurance policy – giving yourself an allowance for extra costs ahead of time allows you to protect yourself from some of the financial burden if something goes wrong.
It's so important to factor these in early so you don't have to play catch up.
Your costs
Other expenses
I get my builder to pay for my on-site consumables in addition to my hourly rate.
Summary
You want to earn: ${{ model.annualIncome | thousands }}
Your total costs and expenses are: ${{ expenses | thousands }}
Your total billable hours are: {{ yearlyHours | thousands }}
Your Super contribution is: ${{ model.super | thousands }}
Your Workers Compensation allowance is: ${{ model.workersComp | thousands }}
DISCLAIMER: This calculator is intended as a guide only, to help stimulate further thought on your own true costs and develop your understanding of how they might impact your charge out rate. This is not financial advice and should not be used as such. We suggest contacting an accountant or authorised financial advisor to discuss your finances further. If you agree to proceed, you accept the terms of this disclaimer.
SHOW ME THE MONEY!!
Results
Based on the figures you've provided, your hourly charge out rate should be: ${{ hourlyRate }} excluding GST.
Based on your nominated billable hours of {{ model.billableHours * model.workWeeks }} at a charge out rate of ${{ hourlyRate }}, your annual revenue will be ${{ revenue | thousands }}*.
*If your annual revenue is $75,000 or higher, you need to be registered for GST.
WOAH, that's a handy exercise. I'm sure glad I checked!
Current earnings
Your current hourly rate is: ${{ model.currentRate }}
Your total yearly billable hours: {{ yearlyHours }}
Your total nominated expenses are: ${{ expenses | thousands }}
Your super contribution is: ${{ model.super | thousands }}
Your Workers' Comp Allowance is: ${{ model.workersComp | thousands }}
Based on the figures you've provided, your current taxable income is ${{ currentRevenue | thousands }}.
How does this figure compare to wages?
If you were to consider full time employment with no additional expenses and full entitlements (i.e. paid leave, super, workers' compensation etc.) whereby you were earning a taxable annual income of ${{ currentRevenue | thousands }} your comparable hourly rate would be ${{ hourlyRateFullTime }} per hour.
Crikey, I'm gonna have a chat to the guys on site. I reckon they'll find this calculator super helpful too! Hmm… I'm stoked I know what my hourly rate should be, but where to next?
Where to next?
A suitable hourly rate is an important first step to ensure a sustainable and successful future in the trade we all love (the greatest trade of all!).
The Hourly Rate Calculator is a simple tool to help all carpenters understand their true costs and take control of what they earn.
It's a small step towards broader awareness within our trade, and is provided not only as a benefit to individuals, but to the entire Australian construction industry, and of course most importantly, the Australian carpenters.
You'll get permanent access to this calculator along with heaps of other great benefits as a Carpentry Australia member.
Carpentry Australia members are:
- BETTER INFORMED
- BETTER SUPPORTED
- BETTER RECOGNISED
- and BETTER PAID!
- … You can be too - Sign Me Up!
Have some questions about this calculator? Read the FAQ here.