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Billing Rate from Cost CalculatorLoaded Cost, Margin and Multiplier

Is the practice earning what it should for the hours it spends?

Loaded cost per chargeable hour, the rate for a target margin and the multiplier on salary cost per hour.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Rate for the target margin
$107
Hourly rate that earns your target margin
Loaded labor cost
$100,000
Total cost per chargeable hour
$80
Drawn to one scale
Loaded labor cost$100,000
Total cost per chargeable hour$80
Rate for the target margin$107
All results
MeasureResult
Loaded labor cost$100,000
Total cost per chargeable hour$80
Rate for the target margin$107
Multiplier on salary cost per chargeable hour2.00
How this was worked out
Work shownrecomputed as you type
Loaded labor = salary x (1 + burden %)
Cost per hour = (loaded labor + overhead) / chargeable hours
Rate = cost per hour / (1 - target margin)
Multiplier = rate / (salary / chargeable hours)

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Loaded labor = salary x (1 + burden %)
  • Cost per hour = (loaded labor + overhead) / chargeable hours
  • Rate = cost per hour / (1 - target margin)
  • Multiplier = rate / (salary / chargeable hours)

How it works

Margin is a share of revenue, so the rate divides cost by one minus the margin. A 25 percent margin needs a rate of cost divided by 0.75, not cost times 1.25.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Margin or markup?

This tool uses margin on revenue. Markup on cost gives a lower rate for the same percent.

Does the rate include realization?

No. If you expect write-downs, divide the rate by expected realization.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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