Quick answer: Work out an hourly rate that covers your wage, overheads (vehicle, tools, insurance, super) and a profit margin, then multiply by the realistic hours a job will take, add materials with a markup, and add GST if you're registered. Don't price off what the bloke down the road charges.
Underquoting is the fastest way to work yourself into the ground. The trap is pricing off gut feel — or worse, off what a competitor charges — instead of off your actual costs. Here's how to work out how much to charge so every job actually makes money.
Step 1: Work out your hourly rate
Your charge-out rate isn't your take-home wage. It has to cover the wage you want plus all the costs of running the business: the ute and fuel, tools and replacements, insurance, phone, software, super, sick days, quoting time and the days you can't work. Add those up across a year, divide by the billable hours you'll realistically work (not 40 a week — closer to 25–30 once you take out travel, quoting and admin), and you've got the rate you need just to break even. Then add a profit margin on top.
Step 2: Estimate the hours honestly
Most tradies underquote because they price the job as if everything goes perfectly. It rarely does. Estimate the hours for the work itself, then add time for travel, setup, clean-up and the unexpected. For jobs with hidden unknowns — old wiring, rotten timber, blocked drains — say in the quote that the price assumes standard conditions and that surprises will be quoted separately.
Step 3: Price materials with a markup
Charge what the materials cost you, plus a markup to cover the time spent sourcing them and the risk of prices changing. A markup isn't gouging — it's paying you for running to the supplier and carrying the cost. Itemise the main materials on the quote so the customer sees what they're paying for.
Step 4: Fixed price or hourly?
For predictable jobs, a fixed price is easier for customers to accept and rewards you for working efficiently. For open-ended work, charge hourly or quote a range and be upfront about what could move the price. Either way, write it clearly on the quote.
Step 5: Add GST and show the real total
If you're registered for GST, add 10% and make the all-in total obvious so there's no nasty surprise at invoice time. Our guide to GST on quotes covers how to show it.
Put it into a professional quote
Once you know your numbers, you still have to write the quote up — and that's where most jobs stall. EasyQuote AI lets you set your hourly rate, call-out fee and region once, then turns a plain-English job description into a priced, itemised quote that matches how you charge. See our trade guides for plumbing, electrical and carpentry quotes, or start free and quote your next job in seconds.
Frequently asked questions
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