Skip to main content
Skip table of contents

Project Cost Rates and Billing Rates

Project costs are determined by the cost of work performed by team members and project expenses. The cost of a team member’s work is determined by the amount of time they contribute to a project and their cost or billing rate.

How Rates Are Determined

When you create a monetary-based Cost Tracker project, rates are used to calculate the costs of each team member's work. If a team member doesn’t have a cost or billing rate defined for them, a default rate is used.

Rates are determined in the following order. If the Apply Global Cost Rates option is enabled, the global rates take precedence. This can be set as the default behavior for projects in Project Defaults.

  1. Team members' role rates assigned at the project level

    • If Revenue Tracking is enabled, the Billing Rate is applied for revenue calculations, and the Cost Rate is applied for actual cost calculations.

  2. Default hourly rates assigned either in the project configuration or at project creation

  3. Global role rates

We recommend setting up global rates so that you can set up your Cost Tracker project more quickly.

Role Rates at the Project Level

You can modify team members' rates on the project level to represent their costs more accurately. You can set the cost rate or the billing rate for a team member or for a role.

Cost Rate

A cost rate is the hourly rate for the team member and can be fixed or flexible based on dates. It is used for the project’s cost calculations.

  • A Fixed Cost Rate is consistent throughout the life of the project. If you change the cost rate, then the project costs change.

  • A Flexible Cost Rate changes depending on a date. You can add multiple cost rates in the future without negatively impacting the current project costs. If you adjust a cost rate that occurred in the past, the project costs change.

To set your project cost rate, see Setting Project Cost Rates.

Billing Rate

This is available if you enable Revenue Tracking for a monetary-based project. The billing rate is the billable hourly rate for a team member and is used for revenue calculations.

To set your project billing rate, see Setting Project Billing Rates.

Default Project Rates

When you create a project, you can set a default hourly rate. When you enter a rate, you see actual costs incurred to date as soon as you create your Cost Tracker project and set the scope.

If you leave the default hourly rate empty when you create a Cost Tracker project, you can add an hourly rate in the project’s Configuration tab under Rates.

Global Rates

Projects can also enable Global Rates instead of project-level rates to manage all rates centrally. Global rates can be applied throughout the organization and for all projects created in Cost Tracker.

If you’ve added global rates AND your project’s hourly cost rate or billing rate is empty, the global rates are used by default. You can also Apply Global Cost Rates to override the project-level rates or use global rates for all new projects by default.

Define Global Rates in the Cost Tracker Configuration tab.

Watch our video: How to Set Rates for Your Cost Tracker Project

Learn More

JavaScript errors detected

Please note, these errors can depend on your browser setup.

If this problem persists, please contact our support.