Free Tool
Effective Bill Rate Calculator
Your published rate and your effective rate are almost never the same. Find out what you actually earn per hour — and what it's costing you.
Your numbers
$120,000
Total invoiced revenue last month
800h
Total hours worked on client projects
$175
Blended rate card / standard rate
10
Billable team members
Your effective rate
Effective Bill Rate
$150/hr
vs $175/hr published — $25/hr gap
Realization Rate
85.7%
Average (target: 85-95%)
Revenue Per Person
$144,000
80 hrs/mo per person
Annual Revenue
$1,440,000
at current effective rate
Annual Rate Leakage
$240,000/yr
Every 1% improvement in realization = $16,800/yr
If You Hit 90% Realization
+$72,000/yr
Effective rate would be $158/hr — closing the gap from $150 to $158/hr
Your effective rate$150/hr
Published rate$175/hr
Common causes of rate leakage
- Scope creep on fixed-fee projects (extra rounds, unplanned features)
- Discounting during negotiations without adjusting scope
- Writing off hours instead of having scope conversations
- Internal meetings and admin charged to project codes
- Inaccurate time tracking (rounding down, forgetting to log)
- Blended rates that under-value senior staff time
Close the rate gap
Track effective rates in real time. Spot leakage before it compounds.