Use this Plumbing calculator to work out the hourly charge out rate you should be using for your plumbing/gasfitting & drainage business. Compare the result with the rate you are currently using now. You may be suprised by the comparison.

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 Is $ Direct Cost Per Chargeable Hour Is $

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: %

TOTAL COST OF DOING BUSINESS:

per hour You now have your charge-out rate per hour for your plumbing/gasfitting or drainage business based on the information you have provided. If the information changes then so will the charge-out rate.

So Good Luck & Make A Healthy Profit
From Your Knowledge & Skills.
You Deserve It!