Work out the tradie hourly rate you actually need — not just enough to cover costs. This free NZ charge out rate calculator turns your income goal, overheads and billable hours into an hourly rate, plus a material markup and margin calculator so you price every job for profit.
This rate is GST-exclusive and worked out before tax — it covers your target income plus overheads, not income tax or ACC levies. Add 15% GST when you invoice, and set aside money for tax. Figures are estimates — confirm your numbers with your accountant.
If you've ever wondered what should I charge per hour in NZ, the honest answer is that there's no single number — it depends on your costs and your goals. A proper labour charge out rate has to cover three things: the wages you want to take home, your business overheads, and a profit on top. Miss any one of them and you're effectively working for less than you think.
The formula the tradie hourly rate calculator above uses is simple: (target income + overheads) ÷ (billable hours per week × weeks worked per year). Drop your billable hours from 40 to 30 and watch the required tradesman hourly rate jump — that's why so many self-employed tradies under-charge. This is also an hourly rate calculator for the self-employed in NZ generally, not just trades.
When you on-sell materials, a markup calculator and a margin calculator give you two different numbers from the same job. Markup = (price − cost) ÷ cost — profit measured against what you paid. Margin = (price − cost) ÷ price — profit measured against what you charged. A 20% material markup is only a 16.7% margin. If you quote a margin when you meant a markup, you leave money on the table on every job. The material markup calculator above shows the sell price, profit and the resulting margin % so there's no guessing.
Knowing how to price a job as a tradie means building in profit deliberately, not hoping it's left over at the end. Covering costs keeps the lights on; profit is what funds the next ute, a quiet month, or finally taking a holiday. Price the job to make money, then protect that margin by getting paid on time — read our guide on managing cashflow as a tradie and on the real cost of chasing invoices yourself. Tight payment terms keep that profit in your account. Once you know your rate, check what you keep with our contractor take-home pay calculator.
Add up the take-home income you want for the year plus your annual overheads (vehicle, tools, insurance, phone, software, accountant). Divide that total by your realistic billable hours for the year (billable hours per week × weeks worked). That gives the labour charge-out rate per hour you need, GST-exclusive and before tax.
There is no fixed figure — it depends on your income goal, overheads and how many hours you can actually bill. Many self-employed NZ tradies land between $70 and $120+ per hour once overheads and profit are factored in. Use the calculator above to work out the tradesman hourly rate that fits your own numbers rather than copying a competitor.
Markup is profit as a percentage of cost: markup = (price − cost) ÷ cost. Margin is profit as a percentage of the sell price: margin = (price − cost) ÷ price. They are different numbers — a 20% markup is only a 16.7% margin. Knowing which one you are quoting on stops you under-pricing materials.
A material markup of 10–20% is common for trades to cover the time, risk and cash you tie up buying, storing and warranting materials. Use the markup calculator above to see the sell price, profit and resulting margin so you are pricing the job for profit, not just covering the supplier invoice.
The rate from this calculator is GST-exclusive and before income tax and ACC. If you are GST-registered, add 15% GST when you invoice. You also need to set money aside for income tax and ACC levies out of the income portion — those are not included in the rate.