NZ BUILDERS
Rate & Margin CentreAvailableReviewed 1 Oct 2026

NZ Builder Rate and Margin Centre

Work out a charge-out rate from your real costs, check markup against margin, and compare against approved NZ builder benchmarks. Free, no sign-in.

Calculator 1

Charge-out rate

1. Wage
Wage entered as
$
hours

Excluding annual leave, public holidays, and sick leave. Default 1,832 hours.

2. On-costs

Enter each as a % of the wage or as dollars a year.

%

Default 3.5%, the employer minimum from 1 April 2026.

KiwiSaver (employer) entered as
%

Default 2%. Varies by industry code; check your ACC invoice.

ACC levy entered as
%

Default 8%, about 4 weeks' annual leave.

Holiday pay entered as
%

Default 4%, about 10 days a year.

Sick leave entered as
3. Annual overhead
$/ year
$/ year
$/ year
$/ year
$/ year
4. Hours and profit
hours

Hours you can actually charge for, after travel, weather, quoting and admin. Default 1,500.

Profit target as
%
Show the charge-out rate

Charge-out rate ex GST

$86.51 / hour

Cost per productive hour
$73.53
Rate ex GST
$86.51
Rate incl GST
$99.49
Profit per hour
$12.98

Where each hour goes (ex GST)

  • Wages$46.41 (53.6%)
  • On-costs$8.12 (9.4%)
  • Overhead$19.00 (22%)
  • Profit$12.98 (15%)
How this is worked out
  1. Annual wage: $38.00 × 1832 paid hours = $69,616
  2. On-costs (KiwiSaver, ACC, holiday pay, sick leave): $12,183
  3. Overhead: $28,500
  4. Cost per productive hour = $110,299 ÷ 1500 hours = $73.53
  5. Rate = $73.53 ÷ (1 − 15%) = $86.51 ex GST (15% margin, 17.6% markup)
  6. Incl GST = $86.51 × 1.15 = $99.49

Every number above is an editable assumption. Profit is worked out ex GST because GST is collected for IRD, not kept.

Calculator 2

Markup vs margin

Try an example:
Work out the sell price from
$

Materials, labour and subcontractors for the job.

%
Show the sell price
Sell price ex GST
$48,000
Profit (ex GST)
$8,000
Markup
20%
Margin
16.7%

A cost of $40,000 with a 20% markup gives a sell price of $48,000 ex GST. That is a 16.7% margin, because margin is measured against the sell price, not the cost.

Benchmark

How NZ builders charge

Approved, combined figures from NZ Builders members, shown only when enough people in a group have responded. Individual responses are never shown.

Sample not sufficient

Fewer than 10 approved responses for this region, role and experience, so no figure is shown. Try a broader group, or check back after the next update.

Date range
1 Jan 2026 to 30 Sept 2026
Minimum sample
10 for a median; 20 for the spread
Limitations
  • Self-reported figures from NZ Builders members, not a random sample of the industry.
  • Shows charge-out rates, not take-home pay or profit.
  • Not a guaranteed or recommended market rate.

Keep this result

Nothing is saved by NZ Builders. The share link carries your inputs in the link itself.

A charge-out rate has to recover more than the wage. KiwiSaver, ACC, holiday pay, sick leave, the ute, tools, insurance and admin all have to come out of the hours you actually bill, and then there has to be profit on top.

The charge-out calculator adds those costs up for a year, divides them by your productive billable hours, and adds your profit target as a margin or a markup. Every assumption is shown and can be changed.

Markup and margin are not the same number. Markup is profit as a share of cost; margin is profit as a share of sell price. The second calculator shows both, so you quote with the number you meant.

Worked Example

  • Charge-out: a $38/hour wage over 1,832 paid hours is $69,616 a year. On-costs at 17.5% add $12,183 and overhead adds $28,500, so $110,299 a year.
  • Spread over 1,500 billable hours that costs $73.53 an hour. A 15% margin gives a charge-out rate of $86.51 ex GST, or $99.49 incl GST.
  • Markup vs margin: a $28,000 bathroom reno with a 20% markup sells for $33,600 ex GST. That is a 16.7% margin, not 20%.

Quick Answers

What should a builder's charge-out rate cover?

Wages, on-costs such as KiwiSaver, ACC, holiday pay and sick leave, business overhead such as the vehicle, tools, insurance and admin, and a profit target, all divided by the hours you can actually bill.

Why use productive hours instead of all the hours worked?

Travel, weather, quoting, supplier runs and admin take time nobody pays for. If the rate is spread over every hour worked, the unbilled hours are never recovered.

What is the difference between markup and margin?

Markup is profit divided by cost. Margin is profit divided by sell price. A 25% markup is a 20% margin, and a 50% margin is a 100% markup.

Does the calculator include GST?

Rates and sell prices are worked out ex GST, then shown incl GST at 15% if you choose. GST is collected for IRD, so it is never counted as profit.

Is my information saved or sent anywhere?

No. The calculations run in your browser. A share link holds your inputs in the link itself; nothing is stored by NZ Builders.

Sources & Methodology

IRD: GSTIRD: KiwiSaver for employersACC: understanding leviesEmployment NZ: annual holidaysEmployment NZ: sick leaveBuilder Charge-Out Rates in NZ

Limitations

  • Results are only as good as the numbers entered. Starting values are general NZ assumptions, not your actual costs.
  • On-cost percentages are simplified; your payroll provider or accountant can confirm your real figures.
  • Benchmarks are self-reported by NZ Builders members and are not a guaranteed or recommended market rate.
  • This does not account for tax, finance costs, or job-specific risk.

Disclosure

General guidance only, not financial, tax, employment or pricing advice. Every result depends on the assumptions you enter. No commercial relationship influences these calculators.

Related

Markup vs Margin CalculatorBuilder Charge-Out Rates in NZ: What Builder-Owners Need to Price Properly

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