Charge-Out Rate FAQ
A charge-out rate is the amount you charge your customer for an hour of labour. This is different to the 'hourly rate' you may get paid by an employer, or pay your employees and subcontractors.
A charge-out rate is your hourly labour rate plus all other related expenses like materials, fuel, equipment rental, etc. It's the amount you charge your customer, as opposed to the amount you get paid.
Simply read the guide above and use our Free Charge-Out Rate Calculator to work out your ideal charge-out rate.
You can use this same guide and our Free Charge-Out Rate Calculator to work out the charge-out rate for your apprentice, employees, or subcontractors. Just use their numbers and other details instead of your own.
Like your charge-out rate, simply work out exactly what the actual cost is to you, and then add an appropriate margin. For a call-out fee, you may wish to include mileage (a variable cost that changes depending on the distance to the job and the price of fuel). For an emergency call-out fee, or call-out fee for a day you would usually have off, +50% on your standard rate, double-time, or even triple-time is common.