Workshop labour rate calculator.
Find the hourly rate that pays for your overheads and your technicians, then the rate that leaves the margin you want.
- Hourly rate for your target margin (ex GST)
- $144.68
- Same rate inc GST
- $159.14
- Break-even hourly rate (ex GST)
- $115.74
- Break-even inc GST
- $127.31
- Billable hours a year
- 4,320
- Yearly costs to recover
- $500,000.00
The calculator runs in your browser. What you type is not sent to PitlaneHQ and is not saved; it is gone when you leave the page.
How it works
Billable hours are technicians × paid hours per technician × the billable share. The break-even rate is yearly overheads plus yearly technician wages and on-costs, divided by billable hours. The rate for your target margin is the break-even rate divided by (1 − margin), so a 20% margin means 20% of every labour dollar is left after costs. Rates inc GST add 10%.
This assumes labour alone recovers your costs. If parts margin pays for some of your overheads, your break-even labour rate is lower than shown. The results are estimates from your own figures, not financial advice.
Keep it all in one place
PitlaneHQ is workshop software for Australian workshops: jobs, quotes, invoices, bookings and service reminders in one place. Try it free for 14 days with no card, or book a walkthrough.