Free tool
Day rate calculator
Work backwards from what you can lay, paint or fit in a day to the rate you have to charge.
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The method
Count the bricks first, then the money
Most sole traders price the wrong way round. They hear what the bloke down the road charges and shave a bit off. The trades that make money do it the other way: they know what they can produce in a normal day, they know what a day has to earn, and the price per unit falls out of that.
A bricklayer is the clearest example. On a straight run of face brick with a labourer keeping the mortar up, an experienced brickie lays somewhere around 450 a day. Give that same brickie arches, a heritage bond, or a second storey off a ladder and the count can drop by half or more. The day is the same length. The rate per brick has to change, or the day earns less.
So the calculator asks three things. What can you do in a normal day, in your unit. How much harder is this particular job. And what does a working day have to bring in for you to hit the income you want after the ute, the insurance and the super are paid. From there it gives you a day rate and a price per unit.
What to do with the number
Treat it as a floor. Check it against the market where you work: your trade association, the rates builders in your area are paying subbies, what the last three quotes you lost went for. If the market is above your floor, you have room. If it is below, you have a decision to make, but at least it is a decision and not a surprise at tax time.
When you win the job, the same numbers go on the invoice: quantity, unit, rate, GST per line. The free tax invoice generator lays it out ATO-correct, and the bricklayer invoice template shows what a per-thousand claim to a builder should look like. Not registered for GST yet? Read invoicing without GST first.
Fair questions
FAQ
How do tradies work out a day rate?
Start with the income you want for the year, add your overheads, and divide by the days you will actually work, which is fewer than you think once holidays, sick days and rain days come out. That is the minimum a day has to earn. Then divide the day rate by what you can realistically produce in a day to get a price per unit.
What is a realistic amount of work in a day?
It depends on your unit. An experienced bricklayer on straight face-brick runs with a labourer often lays 400 to 500 bricks. A painter covers around 40 to 50 square metres with two coats on prepared walls. A tiler lays 10 to 15 square metres of floor. If you charge by the hour, as most plumbers, carpenters and landscapers do, count billable hours only: 6 to 6.5 is honest once travel, quoting and supplier runs come out. Detailed work or tight access pulls any of these down a lot, which is why the calculator adjusts your normal-day number for how fiddly the job is.
Should the day rate include GST?
Work out the rate ex-GST first, because that is the money you keep. If you are registered for GST, add 10% on top when you quote and invoice it. Every figure the calculator shows excludes GST.
What counts as overheads for a sole trader?
Anything you pay to be able to work: ute, fuel, insurance, tools and replacements, phone, licences and renewals, accountant, software, and the super you pay yourself. Most sole traders undercount this by half, which is why they feel busy and broke at the same time.
Is this the price I should quote?
It is the floor. If the going rate where you work is higher, charge the going rate. If it is lower, you now know exactly what accepting that rate costs you per day, and you can decide whether to take the job for other reasons.