Tradie Charge-Out Rate Calculator

This calculator works out the hourly charge-out rate a tradesperson, contractor or small operator in New Zealand needs to charge to cover costs and still take home the income they want, rather than guessing a number or copying an employee wage. You enter four figures: the annual take-home pay you want after tax, your annual overheads such as vehicle, tools, insurance and phone, the number of hours you can realistically bill in a year, and the share of income that goes to tax and ACC. The calculator grosses your target take-home up for tax and ACC, adds your overheads to find the total revenue your business needs to earn, then divides that by your billable hours. It returns the hourly charge-out rate you need before GST, the yearly revenue required, and your gross income before tax. Because billable hours are always far fewer than hours worked, once quoting, travel, admin, leave and downtime are stripped out, and because overheads and your own tax and ACC have to be covered as well, the rate that comes out sits well above an ordinary employee wage. Use a realistic billable-hours figure rather than total hours worked, add GST on top of the result if you are registered, and treat the tax and ACC share as an estimate of your actual position. This figure is a pricing guide only, not financial or tax advice.

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Billable hours are far fewer than hours worked, after quoting, travel, admin, leave and downtime; a realistic figure is the key input. The rate is before GST, which you add if registered. Tax and ACC share is the portion of income that goes to them. Estimate only, not financial advice.