Internal Hourly Rate, Charge Out Hourly Rate, and Total Hourly Cost.
Key Differences.
Internal Hourly Rate
The Internal Hourly Rate refers to the amount your employee is paid per hour of work. It is an important factor to consider when calculating labor costs for your business. It’s the amount of money you pay your employee for each hour they work
- It would be used to calculate the Labour Cost in the general report.
Total Hourly Cost
The total hourly cost is also used to calculate the real cost and projected cost of a project within a project report, which is important in terms of managing your budget.
- Total Hourly Cost is calculated as the total cost of employment to you (Internal Hourly Rate + any overheads).
Charge Out Rate
This is the amount you charge your clients for one hour of the employee’s work.
- The Charge Out Rate is useful in calculating the projected profit of a project.