How do you calculate a tradie day rate?

Add your target pre-tax income to your yearly business overheads, then divide by the number of days you can actually bill in a year. If you are registered for GST, add 10 percent on top of that figure when you quote the customer.

How many days a year can a tradie actually bill?

Far fewer than 365. After weekends, public holidays, annual leave, sick days, quoting, admin and weather, most sole trader tradies bill somewhere around 200 days a year. Using 365 or even 260 in your sums leaves you badly undercharging.

Why is copying another tradie's day rate a bad idea?

Their costs, billable days and income goals are not yours. A rate that works for someone with a paid-off ute and no staff can leave you out of pocket. Work the number up from your own overheads and the days you can actually bill.

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Pricing2 min read

How do you work out your true day rate as a tradie?

By The Mytradelink TeamLast updated 28 May 2026

To work out your true day rate, add your target pre-tax income to your yearly business overheads, then divide by the days you can actually bill in a year. Most sole trader tradies bill around 200 days, not 365. If you are registered for GST, add 10 percent on top when you quote the customer.

The mistake is copying a mate's rate. Their costs and goals are not yours. Here is how to build your own number.

Three inputs, one formula

The formula is simple:

Day rate = (target pre-tax income + yearly overheads) / billable days

You need three honest numbers:

Target pre-tax income. What you want the business to earn before tax. This is the figure your income tax then comes out of, so it is bigger than your take-home goal.
Yearly overheads. Everything it costs to run, whether or not you work a given day: insurance, vehicle and fuel, tools and replacements, phone, software, accounting fees.
Billable days. The days you can actually charge for. Not 365.

Billable days are the number everyone gets wrong

Start at 260 working days (52 weeks, 5 days). Then take out the days you are not earning:

Public holidays, roughly 10
Annual leave, say 20
Sick or family days, say 8
Quoting, invoicing and admin, often a day a week
Weather and quiet days

That easily brings a sole trader down to around 200 billable days. Build your rate on 200, not 260, and definitely not 365.

A worked example

Say you want a $110,000 pre-tax income and your overheads come to $20,000 a year:

Total to recover: $110,000 + $20,000 = $130,000
Billable days: 200
Day rate (excluding GST): $130,000 / 200 = $650 a day

If you are registered for GST, you charge the customer $715 ($650 plus 10 percent GST). Remember the GST is not yours to keep, it goes to the ATO.

Want to plug in your own figures? Our free Day Rate Calculator does this maths for you, including super and profit.

Charge for the full picture

A day rate is not just your time. It covers the unpaid quoting, the admin, the gear, the insurance and the days rain stops the job. Price for all of it once and you stop quietly going backwards on every job you win.

This is general information, not financial advice. Your costs, tax position and super will change the numbers. For tax matters, check the ATO website or talk to a registered tax agent.

Put it into practice: free Charge-Out Rate CalculatorFree, no sign-up, done in a minute.

Common questions

How do you calculate a tradie day rate?: Add your target pre-tax income to your yearly business overheads, then divide by the number of days you can actually bill in a year. If you are registered for GST, add 10 percent on top of that figure when you quote the customer.
How many days a year can a tradie actually bill?: Far fewer than 365. After weekends, public holidays, annual leave, sick days, quoting, admin and weather, most sole trader tradies bill somewhere around 200 days a year. Using 365 or even 260 in your sums leaves you badly undercharging.
Why is copying another tradie's day rate a bad idea?: Their costs, billable days and income goals are not yours. A rate that works for someone with a paid-off ute and no staff can leave you out of pocket. Work the number up from your own overheads and the days you can actually bill.

Keep reading

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