Break-even rate

A break-even rate is the lowest hourly rate that covers a worker's burdened cost plus a share of overhead, so the hour earns no profit and loses no money. Any rate above it is profit.

Example

Say a technician's burdened labor rate is $36.40 an hour and overhead recovery adds $30.77 per billable hour. The break-even rate is $36.40 + $30.77 = $67.17 an hour. To earn a 35% margin on top, divide by 0.65: $67.17 / 0.65 = $103.34 an hour.

Enter your own numbers in the break-even rate calculator.