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Unit Rate Analysis

Break a unit rate into its components.

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A rate that cannot be broken down cannot be defended in a tender negotiation. This Professional calculator rebuilds the rate from its parts: material with waste, labour hours divided by output, equipment hours divided by output, then your overhead and profit percentages applied to the net direct rate.

Method and assumptions

  • material = qty × rate × (1 + waste%)
  • labour = hours × rate ÷ output
  • equipment = hours × rate ÷ output
  • net direct rate = material + labour + equipment
  • quoted rate = net direct rate × (1 + overhead%) × (1 + profit%)
  • All rates and output figures are user-entered from the project's own data; the tool assumes no standard productivity constant or market price.
  • All percentages and inputs are user-defined; the calculation is purely arithmetic and assumes no particular code or specification.
  • A preliminary decision-support estimate: the result does not replace an approved design calculation or review by a competent authority.

Frequently asked questions

Does it assume productivity constants?
No. Output figures, hourly rates and material prices are all yours. The engine assumes no standard productivity and no market price.
How is output used?
Labour and equipment costs are hours × rate divided by the output produced in those hours, which converts a crew cost into a cost per unit of work.
Are overhead and profit compounded?
Yes, in sequence: the net direct rate is increased by overhead, and profit is then applied to that figure, matching common estimating practice.
What is the difference from the tender price tool?
This one prices a single work item; the tender price tool takes the whole project's direct cost through preliminaries, risk, overhead, profit, provisional sums and bond costs.

Next step

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