Before saying yes to the next project, follow one fee through its direct costs and your own time. The result helps you see what the quote needs to support.
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Let’s work it out.
The starting figures are illustrations, not industry benchmarks. Replace them with your own costs and assumptions. Calculations happen in your browser; figures are not saved to your account or sent as analytics properties.
Changes the display label only. It does not convert amounts. Use a consistent basis for tax-inclusive or tax-exclusive figures.
Your planning estimate
- Surplus after your time allowance
- AUD 700.00
- Effective hourly return before time allowance
- AUD 73.33
- Planning margin after time allowance
- 28%
- Your time allowance
- AUD 1,500.00
How this calculation works
Project fee minus direct external costs gives the amount available for your time and surplus. Divide that amount by your hours for the effective hourly return before your labour allowance. Subtract hours × your labour allowance to estimate the planning surplus; divide that surplus by the fee for the planning margin. This includes an imputed cost for your time, not necessarily a cash payment or tax-deductible expense.
A little more context: Follow one job from quote to payment.
How the calculation works
Project fee minus direct external costs gives the amount available for your time and surplus. Divide that amount by your hours for the effective hourly return before your labour allowance. Subtract hours × your labour allowance to estimate the planning surplus; divide that surplus by the fee for the planning margin. This includes an imputed cost for your time, not necessarily a cash payment or tax-deductible expense.
A worked example you can change
The tool starts with the illustrative figures below. They demonstrate the calculation; they are not industry averages, recommended rates or promises about what you will earn. All monetary figures in this example are AUD.
Project fee: 2500 AUD Direct external project costs: 300 AUD Your total project hours: 30 Your hourly labour allowance: 50 AUD Surplus after your time allowance: 700 AUD Effective hourly return before time allowance: 73.33 AUD Planning margin after time allowance: 28% Your time allowance: 1,500 AUD
Make the estimate fit your business work
The most useful estimate is one you can explain. Check these details against the actual job or business arrangement before you rely on the result.
- Include project-specific subcontractors, supplies and licences in direct costs.
- Include calls, revisions and delivery in your hours, as well as production.
- This is a job-level planning calculation, not an accounting profit or cash-flow report. Include business overhead separately in your labour allowance where appropriate.
What this tool does and does not include
The calculation uses the figures you enter and the method above. It does not fetch market rates, convert currencies, assess demand or calculate tax, payroll or legal obligations. Choose a consistent tax basis for the amounts you enter. Changing display currency changes the label only.
Your inputs stay in this browser page and reset when you leave or reload. You can copy or download a text estimate with its assumptions. If you choose to use Lufu, you can then prepare an actual quote or invoice with the details you have agreed.