Rate that covers costs and profit.
A worked example
Starting figures
- Yearly costs
- $240,000
- Billable staff
- 3
- Billable hours each per year
- 1,200
- Target margin
- 25%
What it returns
- Rate to charge
- $88.89
- Break-even rate
- $66.67
- Billable hours
- 3,600
- Revenue at capacity
- $320,000
How to read the results
With the defaults above, rate to charge works out at $88.89.