What does an apprentice really cost you?
The award wage is only the start. Add super, workers comp, leave, TAFE, supervision and tools — then see when an apprentice turns from a cost into net productive value.
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True Annual Cost
Wages plus the on-costs
Real Cost Per Hour
What an hour actually costs
4-Year Timeline
Investment vs output
Breakeven Point
When they turn net positive
About this tool
Apprentice Cost Calculator
Taking on an apprentice is one of the better long-term bets a trades or services business can make — but the award wage on the payslip is only the visible tip of the real cost. Beneath it sit superannuation, workers compensation, paid leave, TAFE and block-release days when the apprentice is off the tools, the supervision time a senior tradesperson spends training them, and the tools and PPE you fit them out with. Owners routinely underestimate the true figure, then feel the pinch mid-year. This calculator pulls all of those on-costs into one number so you can see what an apprentice genuinely costs your business per year and per productive hour — and, just as importantly, when they cross over from a cost into net productive value.
How it works
You choose a trade and the apprentice's year of training, and the tool builds a full annual cost breakdown from that starting point. It layers the on-costs on top of base wages: superannuation at the current rate, a workers-compensation loading that varies by trade, annual leave with the standard leave loading, personal and sick leave, the wage cost of TAFE and training days, an estimate of the senior-staff supervision time that goes into mentoring, and first-year tooling and PPE. From that it derives a total annual cost and a real cost-per-hour figure spread across the working year. It then plots a four-year investment-versus-output timeline — apprentice output climbs as their skills grow while wages step up each year — and estimates the breakeven year where cumulative productive value overtakes cumulative cost. The wage inputs are indicative Modern Award reference rates, and the tool points you to fairwork.gov.au to confirm the current rate for your state and award, and to apprenticeships.gov.au for government incentives that can offset the cost.
Who it’s for
Trades, hospitality and services business owners weighing up whether to take on an apprentice — or wanting a clear-eyed view of what an existing one really costs.
- An apprentice's true annual cost is well above the award wage — super, workers comp, leave, TAFE days, supervision time and tools all stack on top, and this tool totals them into one figure and a real cost-per-hour.
- Apprentices are an investment that pays back over time: output rises year on year as skills build, and the calculator estimates the breakeven year where cumulative value overtakes cumulative cost.
- Government apprentice incentives, state-based subsidies, Group Training Organisations and tax deductibility can all bring the net cost down — check the current position at apprenticeships.gov.au and with your accountant.
Frequently asked questions
Why is an apprentice more expensive than their hourly award wage suggests?
Because the wage is only the base. On top of it you pay superannuation, a workers-compensation premium that's higher for riskier trades, annual leave with leave loading, sick and personal leave, and the wage cost of the weeks they spend at TAFE rather than on site. There's also the hidden cost of supervision — a senior tradesperson's time spent training and checking work — plus tools and PPE, especially in the first year. Bundle those together and the real cost per productive hour is meaningfully higher than the headline rate. This tool exists to make that full number visible before you commit.
When does an apprentice actually start paying for themselves?
Early on an apprentice costs more than they produce — they're learning, they're slower, and they're off the tools for training. As their skills build, their output rises each year while their wage steps up more gradually, so the gap closes and eventually flips. The calculator models this as a four-year timeline and estimates your breakeven year, where the cumulative value of their output overtakes the cumulative cost of employing them. The exact point depends on the trade and how productively they're deployed, but the tool gives you a realistic curve rather than a guess.
Are the wage figures in the tool the exact amount I'll pay?
No — treat them as indicative Modern Award reference rates to build the breakdown, not as legal figures for payroll. Actual apprentice pay depends on the specific award, your state or territory, the apprentice's age and whether they've done prior training, and any enterprise agreement in place. Award rates also change, typically at the annual wage review. Always confirm the current rate for your situation at fairwork.gov.au before you set pay, and check current government incentives at apprenticeships.gov.au. This is general information, not workplace-relations or financial advice.
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