Charge Out Rate Calculator Australia
Set the perfect rate with our charge out rate calculator. Tailored specifically for Australian accountants, bookkeepers and tax advisers.
How do I calculate the ideal charge out rate for my accountancy firm?
To calculate your ideal charge-out rate, factor in your employees’ salaries, employer superannuation contributions and other fixed business expenses. Then, add your desired profit margin on top of those costs.
Be sure to also account for the number of billable hours your firm can realistically achieve in a year, considering non-billable activities and downtime.
What costs should I include when setting my charge out rate?
In addition to salaries and superannuation, include fixed costs like office rent, utilities and software subscriptions. Don’t forget to factor in business insurance premiums, taxes and any other recurring operational expenses.
Those costs should be incorporated into your charge out rate so your pricing covers the full spectrum of expenses, avoiding undercharging and maintaining profitability.
How do I calculate the actual number of billable hours in a year?
To calculate your firm’s actual billable hours, subtract the non-billable hours from the total working hours in the year. Non-billable hours can be time spent on internal meetings, administrative tasks and professional development.
Moreover, account for public holidays and annual leave to accurately represent the number of billable hours your team can realistically generate.
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