What Should You Charge for Excavator Hire in Australia?
What Should You Charge for Excavator Hire in Australia?
If you’re running an earthmoving business, one of the most common questions is:
“What should I charge for my excavator?”
The answer depends on more than just machine size. Fuel, transport, insurance, maintenance, operator wages, finance repayments, and overheads all affect your hourly rate.
Many operators make the mistake of copying competitors without knowing whether those rates are actually profitable.
Typical Excavator Hire Rates in Australia
As a general guide, wet hire (machine + operator) rates often fall within the following ranges:
Excavator Size
Typical Wet Hire Rate
1–3 tonne mini excavator
$90–$130/hr
5–8 tonne excavator
$120–$170/hr
12–15 tonne excavator
$140–$220/hr
20–30 tonne excavator
$180–$300+/hr
35 tonne+ excavator
$250–$450+/hr
These figures vary significantly depending on location, demand, attachments, transport requirements, and operator experience.
Why Many Contractors Undercharge
A common mistake is only looking at:
Fuel costs
Operator wages
Finance repayments
But your true operating cost also includes:
Maintenance and repairs
Tyres/tracks or undercarriage wear
Insurance
Registration and compliance
Administration costs
Advertising and marketing
Accounting fees
Downtime and breakdowns
Superannuation
Profit margin
If these costs aren’t included, you could be working hard while making very little profit.
How to Calculate Your Hourly Rate
A better approach is to calculate:
Annual Business Costs + Annual Machine Costs + Desired Profit ÷ Billable Hours Per Year
This gives you a realistic hourly rate that covers your expenses and helps your business grow.
Don’t Forget Utilisation
A machine may be available for 2,000 hours per year, but that doesn’t mean you’ll bill 2,000 hours.
Many contractors only achieve:
1,000–1,400 billable hours annually
Less during wet periods or economic slowdowns
The fewer hours you bill, the higher your required hourly rate needs to be.
Consider Attachments and Specialised Work
Attachments can justify higher rates, including:
Tilt rotators
GPS machine control
Rock breakers
Screening buckets
Mulchers
Augers
Specialised operators with advanced skills often command higher rates than standard excavation work.
The Real Question
Instead of asking:
“What is everyone else charging?”
Ask:
“What rate does my business need to be profitable?”
Knowing your numbers gives you confidence when quoting and helps avoid taking on unprofitable work.
Calculate Your Own Excavator Hire Rate
Every business is different.
Use the Earthworks Hub Hourly Rate Calculator to calculate your true operating cost, determine your break-even point, and work out a profitable hourly charge for your excavator business.
Try the Hourly Rate Calculator today and find out what your machine should really be earning.
What Should You Charge for Excavator Hire in Australia?
What Should You Charge for Excavator Hire in Australia?
What Should You Charge for Excavator Hire in Australia?
If you’re running an earthmoving business, one of the most common questions is:
“What should I charge for my excavator?”
The answer depends on more than just machine size. Fuel, transport, insurance, maintenance, operator wages, finance repayments, and overheads all affect your hourly rate.
Many operators make the mistake of copying competitors without knowing whether those rates are actually profitable.
Typical Excavator Hire Rates in Australia
As a general guide, wet hire (machine + operator) rates often fall within the following ranges:
These figures vary significantly depending on location, demand, attachments, transport requirements, and operator experience.
Why Many Contractors Undercharge
A common mistake is only looking at:
But your true operating cost also includes:
If these costs aren’t included, you could be working hard while making very little profit.
How to Calculate Your Hourly Rate
A better approach is to calculate:
Annual Business Costs
+
Annual Machine Costs
+
Desired Profit
÷
Billable Hours Per Year
This gives you a realistic hourly rate that covers your expenses and helps your business grow.
Don’t Forget Utilisation
A machine may be available for 2,000 hours per year, but that doesn’t mean you’ll bill 2,000 hours.
Many contractors only achieve:
The fewer hours you bill, the higher your required hourly rate needs to be.
Consider Attachments and Specialised Work
Attachments can justify higher rates, including:
Specialised operators with advanced skills often command higher rates than standard excavation work.
The Real Question
Instead of asking:
“What is everyone else charging?”
Ask:
“What rate does my business need to be profitable?”
Knowing your numbers gives you confidence when quoting and helps avoid taking on unprofitable work.
Calculate Your Own Excavator Hire Rate
Every business is different.
Use the Earthworks Hub Hourly Rate Calculator to calculate your true operating cost, determine your break-even point, and work out a profitable hourly charge for your excavator business.
Try the Hourly Rate Calculator today and find out what your machine should really be earning.
Or watch the Hourly Rate workshop video which explains how to use the calculator:
More posts