What Should You Actually Charge?
Most tradies price off gut feel or what the competition charges. Plug in your real costs and find the rate that actually covers your business - and pays you properly.
Your Hourly Rate
Why Most tradies Underprice Themselves
Charging "what feels right" almost always means covering costs you forgot to count.
Not Every Hour Is Billable
Driving, quoting, admin, and picking up materials all eat into a 40-hour week. Most tradies only bill 25-30 hours - your rate has to account for the rest.
Overheads Don't Pause When You Do
Insurance, vehicle finance, and tools cost the same whether you're on a job or on leave. Spread the full annual figure across the hours you actually bill.
Break-Even Isn't a Business
Covering costs and paying yourself a wage still leaves nothing for growth, bad debts, or a slow month. That's what the profit margin is for.
Got Questions About Pricing?
Straight answers about setting your hourly rate as a trade business.
It's your baseline. This is the minimum you need to cover costs and pay yourself properly - most tradies then adjust up slightly for the local market, job complexity, or demand. Never quote below your break-even figure.
Anything the business pays regardless of whether you're on a job: vehicle finance and running costs, insurance, tools and equipment, software, phone and internet, accounting, and marketing. Pull the real number from your accounting software if you can - guessing low here is the most common pricing mistake.
Because most of a working week isn't billable. Driving between jobs, quoting, picking up materials, invoicing, and admin all happen off the clock as far as the customer is concerned, but they still cost you time. Be honest about the number - inflating it just means underpricing every job.
Most trade businesses aim for 10-20% on top of break-even. Higher if you're trying to fund growth, buy equipment, or build a buffer for slow months and bad debts.
Pricing correctly is half the battle - the other half is getting enough enquiries that you can afford to hold your rate instead of discounting to win work. That's where marketing comes in.
Charging the Right Rate Still Needs the Right Leads
A good hourly rate means nothing without enough enquiries to fill the diary. more jobs in 90 days or we work for free.
Usually within an hour, Mon-Fri 8am-6pm AEST.
Prefer to pick a time? Book a 30-min strategy call →