Day Rate Builder

What it does

• A day rate is a cost recovery number first and a market number second.
• The builder works back from annual costs and the days you can really sell.
• Margin is applied once, after costs, rather than hidden inside an hourly guess.

How to use it

1. Count billable days from last year actuals, then subtract holidays you actually took.
2. Costs include software, insurance, hardware and a contribution to a pension.
3. The break-even rate is the number below which work costs you money.
4. Publish one rate; a menu of rates invites negotiation you are not paid for.

Safety notes

• A rate built from 260 billable days will not survive an ordinary year.
• Never quote below the break-even rate to win a first job; it sets the anchor.