STEP 1 - Available Working Hours Per Year

Determine how many hours you can charge out for your plumbers/drainers/gasfitters

Number of working days in a week:

Number of working hours in a day:

Total Hours Available Per Year:

STEP 2 - Working Days/Hours Lost & Not Chargable Per Year

Calculate how much each employee costs you per year in unproductive time

Holidays, Annual Leave, Christmas, etc. (days per year):

Public Holidays (days per year):

Industry Holiday/Picnic Days (days per year):

Sick Pay, Bereavement, Maternity, etc. (days per year):

Other Time Off Allowed - Special Occasions (days per year):

Allowance for Bad Weather - Rain, Snow, Heat, etc. (days per year):

Non-Chargeable Hours per Day - Travel Between Jobs, Callbacks, Paperwork, etc.:

Total Chargeable Hours Per Year:

STEP 3 - Cost of Each Employee Per Year

Calculate how much your employees cost you per year

Weekly Pay Rate or Salary For Each Employee: $

Annual Leave Loading (Christmas Bonus, etc.): %

Workers Compensation Insurance: %

Payroll Tax (if applicable): %

Employer Paid Superannuation (Long Service Leave, Retirement Plan, etc.): %

Fare Allowances or Other Allowances Per Week: $

Other Costs Per Week (Bonuses, Commissions, etc.): $

Redundancy (Number of Days For Dismissal):

Other (Number of Days):

Direct Labour Cost Per Year: $

Direct Cost Per Chargeable Hour: $

STEP 4 - Overheads

It is necessary to include overheads in the chargeable rate.
The overheads consist of all costs involved in operating your plumbing/gasfitting or drainage business, including non-cash items such as depreciation. These can be found in your profits & loss statement or ledgers.
All of these costs should be included as a yearly cost.

Accounting & Legal Expenses: $

Advertising & Marketing Expenses: $

Bank & Government Charges: $

Donations/Sponsorships: $

Water, Gas & Electricity Expenses: $

Tools, Plant & Equipment Hire Expenses: $

General Insurance Expenses: $

Interest Paid: $

Motor Vehicles (Gas, Petrol, Service, Parking, etc.): $

Printing, Postage & Stationery: $

Protective Clothing Expenses: $

Office Rent / Lease Expenses: $

Subscriptions, Licenses & Education: $

Telephone Expenses (Mobile Phones, 2-Way, etc.): $

Salaries/Wages For non-Chargeable Staff (Storeman, Supervisors, etc.): $

Directors' Fees / Expenses: $

Depreciation of Vehicles, Plant & Equipment: $

Sundries: $

Total Annual Overheads: $

STEP 5 - Provision For Overhead

Number of Employees Whose Labour Is Chargeable:

Provision For Overheads $

STEP 6 - Profit (this is what it's all about!!)

Don't forget to include a profit margin in your chargeable hours.
You would determine what margin for profit you want from your business. This would be influenced by the available return from other investments & also what the market you are working in will allow.

Profit Margin %