Calculator FAQ

Although rates per metre square (m2) can provide a simple way to estimate or reconcile jobs the only real way to determine what is needed to turn a profit is to firstly understand your hourly rate.  Once you know what you need to earn to cover costs and make a profit you can then convert that into metre, lineal or day rates. Many chippies miss this step, but it’s critical and can make all the difference between making money or making a loss.  ALWAYS go back to your hourly rate per man hour and use the Hourly Rate Calculator to help determine your starting point.

As with metre rates, if you’re working on purchase order jobs the only way to determine whether they’re going to be profitable or not is to bring it back to your $ cost vs $ earned per man hour.  Many chippies miss this step, but it’s critical and can make all the difference between making money or taking a loss.  ALWAYS go back to your hourly rate per man hour and use the Hourly Rate Calculator to help determine your starting point.

Absolutely! It’s a great idea to run your apprentice and the rest of your team through the calculator. You can do the calculator solely focused on them first to find their true cost per man hour and per year, and then run the calculator again including that as one of your additional business costs to work out how to charge for the two of you put together. Don’t forget – unless you’re a member, you’ll only get a few tries at using the calculator, but you can sign up for unlimited access as a member here.

Absolutely! It’s a great idea to run your apprentice and the rest of your team through the calculator. You can do the calculator solely focused on them first to find their true cost per man hour and per year, and then run the calculator again including that as one of your additional business costs to work out how to charge for the two of you put together. You’ll get a few tries at using the calculator if you’re not a CA member, but you can sign up to CA for unlimited access here.

Hmm. The calculator has been developed and rigorously tested by a team of experienced carpenters and builders and it’s pretty good… but it’s only a first step.  If you’ve got a result that seems way out, go back, check over the information you’ve input for your hours and costs and make sure they’re as accurate as possible, and see how that impacts the result you get – you should find it’s pretty close to the mark.

If, however, you’re comparing the result to the “going rate” you, or guys you know have been charging, it could well be that the “going rate” is the problem. Play around with the various inputs of the calculator to see how different figures impact the outcome. You’ll get a few tries at using the calculator if you’re not a CA member, but you can sign up to CA for unlimited access here.

Bottom line is, if you can’t make money on a job with your own costs and expenses, don’t take the job on. If you’re currently in a job that you’re happy with but can now see the numbers just don’t stack up then it’s time to carefully consider your options. If you’ve worked hard to get yourself into your current position you might not want to just throw it away, and let’s face it – doing that might simply not be an option for you anyway! The good news is that CA is here to help with this kind of stuff, and, if you’ve now just learned what your true financial position looks like then you’re far better off than those who are still plodding along with no idea.  As a CA member, you can get access to dedicated support from our team of experienced Trades Advisors*, who can give you practical advice on how to approach a re-negotiation with your boss and how to communicate and back your rate in a way that helps you get a good outcome.  If you’re not already a member, you can find out more or sign up here.

*Trades Advisor support available on the Intermediate and Premium Packs.

While we developed this service mainly as a benefit for CA members, we’ve opened up access so you can have a try before getting on board. If you’ve used your free goes, you can Sign up here to get unlimited access to the Hourly Rate Calculator (and a heap more benefits too!).

You’re not alone, mate – you’re uncovering a big part of what’s been keeping our rates so low for so long.  Uncovering your true costs and finding your hourly rate is an important first step, but knowing what to do with it is a whole other challenge.  If you’re stuck with what to do next, get on board and get in touch – we can help.

This is a big grey area in our industry, and the fact is, a lot of guys don’t know what the real rules are.  In some situations a contractor can be deemed an employee (for Super/Work Cover purposes) meaning your boss may be required to make these contributions on your behalf.

First step – head over to the ATO website. There are a bunch of different factors that come into play when working out whether you or your boss should be covering, but they’ve got a great Employee / Contractor decision tool that takes you through and can give some clarity.

If you work through the decision tool and it suggests your boss should be the one covering these costs for you, it’s important to raise it with them – you could be doing them a big favour in saving them issues down the track. As a CA Member*, if you need some advice or support on how to approach this kind of conversation, you can get access to dedicated, experienced Trades Advisors to walk you through.  Click here to find out more and sign up for membership.

*Trades Advisor support available on the Intermediate and Premium Packs.

You’re off to a good start!

For a very basic guide, you could use the example figures we’ve provided, and work off that until you’ve got some more concrete information for your situation, but the more accurate you can be on your costs, the more accurate the rate you generate will be too.  You could ask the other guys on site what their main costs are, but nothing is going to be as good as doing some proper research yourself.
And if you’re stuck – get in touch.  As well as specific advice* on this, being a part of CA gives you access to a heap of resources, tools and information to make your transition to working for yourself easier.  Get on board here.

*Trades Advisor support available on the Intermediate and Premium Packs.

Great question!! The answer all depends on you and how you work.  If you’re full time for one builder and your hours and expenses are all pretty consistent, you’ll likely only need the one rate.  But if you do a bit of private work on the side, you’ll definitely need to consider that separately.  The good thing is, it’s not a stab in the dark any more – you can use the calculator to suss out and refine what you need to charge as your situation changes, just make sure you’re a member so you get unlimited access!

That’s what we’re here for.  If you’re stuck with what to do next, get on board and get in touch – we can help.