Plumbing
Plumbing Labour Rate Calculator
What you pay a plumber is only part of what a plumber costs. Work out the rate that covers burden, overhead and the margin you want to keep.
Result
Emergency and after-hours work should carry a premium on top of this rate. It costs more in overtime, and it is worth more to the customer.
See AI receptionistWhat moves the number
- Billable hours per plumber per year, which is the denominator that matters most.
- Burden, including workers compensation at a plumbing classification.
- Overhead including van, stock, licensing and insurance.
Where this one goes wrong
Using a rule of thumb multiple of the wage. The multiple that works depends on your burden, your utilisation and your overhead, and borrowing one imports another company's numbers.
Questions
About this calculator
How is this different from what I currently charge?
Most plumbing businesses set their rate by looking at competitors. This works from the inside out: your costs, your overhead, your target margin. If the two numbers are far apart, one of them is wrong.
What if my rate comes out above the local market?
That usually means overhead is too high for your billable volume, or billable hours are lower than they should be. Both are fixable, and both are more useful to know than to ignore.
Do apprentices need a separate rate?
Yes. Run the calculator once per pay grade, since burdened wage and billable hours both differ significantly between an apprentice and a licensed plumber.
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How to use this calculator
- Plumber hourly wage ($). Enter your own figure; the page starts at $30.
- Labour burden (%). Taxes, workers' comp, insurance, benefits and paid time off.
- Annual overhead ($). Enter your own figure; the page starts at $180,000.
- Number of plumbers (plumbers). Enter your own figure; the page starts at 3 plumbers.
- Billable hours per plumber per year (hrs). Enter your own figure; the page starts at 1,350 hrs.
- Target net margin (%). Enter your own figure; the page starts at 20%.
The result updates as you type, so you can try a figure, see what it does to hourly rate to charge, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Plumber hourly wage | $30 |
| Labour burden | 30% |
| Annual overhead | $180,000 |
| Number of plumbers | 3 plumbers |
| Billable hours per plumber per year | 1,350 hrs |
| Target net margin | 20% |
What comes out
| Result | Value |
|---|---|
| Hourly rate to charge main result | $104.31 |
| True cost per billable hour | $83.44 |
| Burdened wage | $39 |
| Overhead per billable hour | $44.44 |
Your true cost per billable hour is $83.44. To hold a 20% margin, bill $104.31 an hour.
How sensitive the answer is
Holding everything else steady and changing only plumber hourly wage, this is what happens to hourly rate to charge. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Plumber hourly wage ($) | Hourly rate to charge |
|---|---|
| $15 | $79.93 |
| $22.5 | $92.12 |
| $30 example above | $104.31 |
| $45 | $128.68 |
| $60 | $153.06 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Plumber hourly wage ($)
- A money amount, starting at $30.
- Labour burden (%)
- Taxes, workers' comp, insurance, benefits and paid time off.
- Annual overhead ($)
- A money amount, starting at $180,000.
- Number of plumbers (plumbers)
- Measured in plumbers, between 1 and 500, starting at 3 plumbers.
- Billable hours per plumber per year (hrs)
- Measured in hrs, between 1 and 3000, starting at 1,350 hrs.
- Target net margin (%)
- A percentage, between 0 and 90, starting at 20%.
What the results tell you
| Result | What it is |
|---|---|
| Hourly rate to charge | The headline result. A money figure. |
| True cost per billable hour | A money figure. |
| Burdened wage | A money figure. |
| Overhead per billable hour | A money figure. |
Before you rely on this number
Pipe sizing, flow and pressure figures depend on the actual fittings, the run, the material and local code. Code requirements vary by jurisdiction and override any general calculation, so check what applies where the work is happening.
Keep going
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