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Set a Target Hourly Rate That Covers Super, Overhead, and Time Off
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Setting a target hourly rate that covers your superannuation, overheads, and non-billable time is essential for sustainable sole trader pricing in small business Australia. Using an hourly rate calculator can help you move beyond quoting just break-even rates and build a pricing strategy that reflects the true value of your work. To support your business growth, we offer a complimentary 20-minute pricing check-in with an EBTA advisor who can help you calculate your target hourly rate and provide practical guidance tailored to your needs.
Why break-even rates keep you busy but stuck
Quoting a break-even rate might seem like a safe starting point, but it often leaves you working without meaningful profit. By only covering the basics, you miss out on including key elements that ensure financial stability and growth. It's time to rethink how you calculate your rates.
Understanding these pitfalls will guide you to a rate that truly supports your goals.
The target hourly rate: what it must include (super, overheads, time off)
To achieve a sustainable income, your target hourly rate must encompass several critical components:
Superannuation contributions
Overheads and operational costs
Allowance for non-billable time
Planned time off
Without these, your business may face unexpected strains. Next, let's explore how our calculator simplifies this process.
How our calculator works: a step‑by‑step walkthrough
Our calculator guides you through each step:
Enter your desired annual income.
Add fixed costs like rent and utilities.
Include variable expenses.
Allocate time for holidays and non-billable hours.
By following these steps, you'll develop a confident pricing framework that reflects your true business needs.
Take control of your financial future with the right knowledge and tools.
What this clarity gives you: confidence, margin, and better quotes
Achieving clarity in your pricing strategy empowers you with:
Increased confidence in financial decisions
Higher profit margins
More competitive and informed quotes
This newfound clarity will allow you to navigate slow seasons with ease.
With EBTA’s support, you can tackle any financial challenge.
Start building the foundation for your business's success.
P.S. Don't miss out on your 20-minute pricing check-in with our experts!
