How Much Should You Charge?

This calculator helps you work out how much you should charge, by calculating the various things you need to factor in.

Disclaimer!

This calculator is not a promise of earnings or profits. For any legal, financial or tax advice, please seek professional advice/assistance. This is to be used for general informational purposes only.

Rate Calculator
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  • Put the below numbers into the "Employee Equivalent" field to see how they equate for an Independent Support Worker.
  • Minimum Wage: $24.95 per hour.
  • Average Australian Wage: Aproximately $40 per hour.
  • Average DSW Wage: Aproximately $30 to $40 per hour.

What It All Means

Here is what each field means:

  • Net Hourly Rate: This is the amount you get to take home and pay all your other expenses with, including fuel, insurances, registrations and anything else. So keep in mind that this still includes all business expenses and personal expenses.
  • Employee Equivalent: This is the ROUGHLY equivalent amount you would need to get as an employee to be better off. It is the gross hourly rate you see on a normal payslip which includes tax, but not super or leave amounts.
  • Tax: This is a very rough estimation of the tax you might pay based on; 25% x (Total - Super). Your taxable income is likely lower than what we used due to business expenses and other considerations. Our estimate is likely higher than what you will pay. but this keeps you safe from a tax bill as well.
  • Sick Leave: 2 weeks a year of net pay.
  • Annual Leave: 4 weeks a year of net pay.
  • Super: 12% of the total amount.
  • Total: The sum of all other fields.

To work out how much you may want to charge, you could start by entering the hourly rate you would get as an employee into the "Employee Equivalent field."

If that is $35 per hour, enter 35 into the "Employee Equivalent" field and see what happens.

You will see that the equivalent for an Independent would be a total rate of $63 per hour. However, this only equates for a small amount of claimed expenses.

You can also do it by setting the net hourly rate to the number you want to take home before expenses. Or by setting the total to the number you were thinking of charging.