Charge-Out Rate Calculator
Turn your true cost per hour into the rate you should charge, with AU on-costs and the billable-hours reality built in.
Your charge-out rate is what you bill per hour so a job covers everything, not just the wage for that hour. Take the pay you want, add your on-costs and overheads, divide by the hours you actually invoice in a year, then add profit. Enter your numbers below and the calculator returns the rate.
The formula
Annual cost is your pay grossed up for on-costs, plus overheads. Divide that by your billable hours a year to get your true cost per hour. Then lift it by your target margin to get the charge-out rate: cost per hour ÷ (1 − margin). Everything above cost is your profit.
AU on-costs explained
On-costs are the employment costs on top of a bare wage: superannuation, workers compensation, leave and leave loading. They are the user-set on-costs field in the calculator. These rates change and some vary by state, so set your own current figures and verify them against the ATO and your state regulator rather than relying on a fixed number.
Billable hours: the number that trips people up
You do not bill every hour you work. Quoting, travel, admin, weather and gaps between jobs all eat paid time. If you work 38 hours but bill 30, your rate has to recover the full business cost across those 30. Undercount your billable hours and you will price too low without knowing why.
Use this rate in a painting quote
Once you have your rate, put it to work pricing a real job.
Frequently asked questions
How do I calculate my charge-out rate?
Add your on-costs to the pay you want, add your annual overheads, and divide by the hours you actually bill in a year. That gives your cost per billable hour. Then price above it for profit. The calculator does all of this: enter your numbers and it returns the rate.
What should a painter charge per hour?
There is no single figure, because it depends on your wage, overheads, how many hours you truly bill and the margin you want. Two painters with the same take-home can need very different rates if one carries more overhead or bills fewer hours. Work out your own with the calculator rather than copying a number.
What are on-costs?
On-costs are the extra employment costs on top of a wage: superannuation, workers compensation, leave and leave loading, and similar. They are real money you have to cover, so a charge-out rate built only on the bare wage will run at a loss. Rates change, so set and verify your own current figures in the calculator.
Why is my charge-out rate higher than my wage?
Because the rate has to cover more than the hour you are paid for. It carries your on-costs, every overhead the business pays whether or not you are on a job, the hours you work but cannot bill, and the profit that lets the business grow. A rate equal to your wage covers none of that.