MarginWorksPricing & Bids
Crew Cost & Required Billable Rate
Turn your per-worker loaded labor rate into a per-crew, per-hour cost, then see what you have to charge per crew-hour to hit your target margin.
Required billable rate$81.25 / hour
Crew labor cost$65 / hour
Total cost (labor + overhead)$65 / hour
Margin dollars$16.25 / hour
How we got here
- Crew labor cost = loaded rate × crew size = $32.5 × 2 = $65
- Total cost = crew labor cost + overhead = $65 + $0 = $65
- Required billable rate = total cost / (1 - margin) = $65 / 0.80 = $81.25
Required rate at other margins
| Margin scenario | Required rate |
|---|---|
| Bare (10%) | $72.22 |
| Modest (15%) | $76.47 |
| Typical (20%) | $81.25 |
| Healthy (25%) | $86.67 |
| Strong (30%) | $92.86 |
Next Decision
Based on your results, these related decisions are available.
Methodology
Formula: crew labor cost = loaded rate × crew size. Total cost = crew labor cost + overhead allocated per crew hour. Required billable rate = total cost / (1 - target margin).
Assumption: overhead per crew hour defaults to $0 until you've run Overhead Allocation & Break-Even Revenue, at which point that engine's real number should replace the placeholder.
Limitation: this is a rate, not a bid. See Job Profit Check to verify a specific bid actually clears a profit once real job costs are counted.