Time, Utilization & Profitability

Bill Rate

Definition

The hourly rate you charge clients. Not the same as your cost rate (what it costs you to employ someone) or your effective rate (what you actually earn). Example: bill at $150/hr, cost rate $65/hr, effective rate on a particular project $95/hr.

Why It Matters

Setting the right bill rate requires knowing your cost rate, target margin, and utilization rate. Most freelancers set it by gut and leave money on the table.

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