Labour Rate Calculator
Work out what you should charge per hour based on your actual costs and profit goals. Built for NZ workshop owners.
Your Costs
NZ average: $30-35/hr for qualified mechanics
Power, insurance, tools, consumables, etc.
Typically 60-75% of total hours worked
10%30%50%
Recommended labour rate
$111/hour
+ GST
Breakdown
Weekly wage cost (inc. ACC, KiwiSaver)$1518.00
Total weekly cost$2318.00
Cost per billable hour$77.27
Profit per hour$33.11
Weekly profit$993.43
Annual profit (48 weeks)$47,685
Note: This calculator provides estimates based on one technician. For multiple staff, multiply costs accordingly. Parts profit is additional to labour.
Are you actually hitting $111/hr?
Hoist tracks real billable hours job-by-job, so you always know if your workshop is hitting this number.
See how Hoist worksNZ Labour Rate Benchmarks (2026)
$100-140
Auckland
$95-130
Wellington
$90-125
Christchurch
$80-110
Regional NZ
Frequently Asked Questions
What is the average mechanic labour rate in New Zealand?
The average mechanic labour rate in NZ ranges from $80-140 per hour depending on location. Auckland typically charges $100-140/hr, Wellington $95-130/hr, Christchurch $90-125/hr, and regional areas $80-110/hr. These rates exclude GST.
How do I calculate the right labour rate for my workshop?
Calculate your total costs (wages including ACC/KiwiSaver, rent, overheads), divide by your realistic billable hours (typically 60-75% of total hours), then add your target profit margin (15-30%). This gives you the minimum rate needed to cover costs and generate profit.
What costs should I include when calculating my labour rate?
Include: technician wages plus employer costs (ACC levies, KiwiSaver at ~15% extra), rent/lease, power and utilities, insurance, tools and equipment depreciation, consumables, software subscriptions, and administrative overhead.
What percentage of hours are typically billable in a workshop?
Most workshops achieve 60-75% billable efficiency. This means for every 40 hours worked, 24-30 hours are billed to customers. The rest is spent on quotes, customer communication, cleaning, training, and non-billable tasks.
Should I charge GST on top of my labour rate?
Yes, if your business is GST registered (required when turnover exceeds $60,000), you must add 15% GST to your labour rate. Most workshops quote rates excluding GST for B2B clarity.
Track Your Actual Labour Profitability
Hoist tracks labour time on every job so you can see your real profitability, not just estimates.
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