Subcontractor Rate Calculator
Use this subcontractor rate calculator to estimate a workable day rate and hourly rate based on your target income, costs, and billable days.
What This Calculator Does
This calculator turns annual income goals and business costs into a subcontractor rate. It helps self-employed tradies and specialist subcontractors avoid charging too little.
How to Use
- Enter your target annual income.
- Enter annual business costs.
- Enter billable days per year.
- Click calculate.
Example
If you want $110,000 income, have $28,000 in annual costs, and expect 220 billable days, the calculator shows the day rate you need.
Why This Calculation Matters
A lot of subcontractors charge what others charge without checking whether it actually supports their own goals and costs. This calculator gives you a more grounded rate.
Common Mistakes
- Using total working days instead of billable days.
- Leaving out tool, vehicle, and insurance cost.
- Comparing your rate to others without checking your cost base.
- Pricing too low to stay busy.
FAQs
Why are billable days important?
Because you cannot charge for every day of the year. Admin, weather, and downtime all reduce real earning days.
Should my rate include profit?
Yes. Your rate needs to cover costs and still leave enough income for you and the business.
Can I turn the day rate into an hourly rate?
Yes. This calculator gives both, which is useful for different quoting styles.