What should you charge per hour in Australia?
Stop guessing. This free calculator works out your real rate — the one that actually covers your costs.
This is the profit you want to keep — not your revenue. Enter what you actually want in your pocket before paying income tax.
Add up everything: software, insurance, accountant, tools, vehicle, phone, marketing. Don't include your own wages.
Not sure? Common examples
- Public liability insurance: $800–$2,500/year
- Accounting software (Xero/MYOB): $300–$700/year
- Accountant/bookkeeper: $1,500–$4,000/year
- Phone and internet (business portion): $600–$1,500/year
- Vehicle (business use portion): $2,000–$8,000/year
- Tools and equipment: varies
Be honest. Every hour spent quoting, invoicing, travelling or doing admin is an hour you can't charge for. Most sole traders bill 50–65% of a standard work week.
Working 40 hrs/week but billing 25 hrs = 62.5% billable ratio. That's realistic.
Subtract annual leave, public holidays, sick days, and quiet periods.
- 52 weeks total
- − 4 weeks annual leave
- − 2 weeks public holidays
- − 2 weeks sick/slow periods
- = 44 working weeks (recommended starting point)
If your annual turnover is over $75,000, you must register for GST and add 10% on top of your rate. The base rate shown is ex-GST.
As a sole trader, no one pays super for you. The standard rate is 12% of your income.
Your hourly rate
Day rate
$739
Week rate
$2,310
Annual revenue
$101,600
Billable hours/yr
1100
⚠️Break-even rate (covers costs only): $11/hr
📊Most people mistakenly charge: $39/hrYou'd be undercharging by $54/hr
To earn $80,000 per year after covering $12,000 in business costs and saving $9,600 for super, you need to bill $93/hour across 1100 hours of paid work each year.
Most people calculate their rate by dividing their salary target by a full 40-hour week and 52 weeks. That gives $39/hour — but it ignores your overheads, unbillable time, and leave. The real number is $93/hour.
If you're currently charging less than this, you're subsidising your clients.
Track your billable hours and send invoices
Xero makes it easy to invoice clients at your new rate, track time, and handle BAS and super automatically.
Try Xero Free for 30 Days →Download your rate card
Get a one-page rate card you can share with clients — pre-filled with your hourly, day, and weekly rates.