What do you really earn for an hour of work?
The fee actually earned for each hour spent, once overruns, revisions and unbilled time are counted. It is often well below the rate on the price list, and shows exactly which work is worth doing.
Get a finance reviewFee received ÷ Total hours spent (billed and unbilled)
There is no general benchmark. The test is whether it stays comfortably above the full cost per hour, ideally by at least a third.
The fee received for a project, client or service divided by the total hours actually spent on it, including time that was not billed. It can be compared with the standard charge-out rate and with the full cost of an hour of the team's time.
Charge-out rates describe what a business hopes to earn. The effective hourly rate shows what it does earn. On fixed-fee work in particular, a project priced at a healthy rate can end up earning half that once revisions and overruns are counted. Comparing effective rates across clients and project types is one of the fastest ways to find underpriced work and to set fees with confidence.
Count every hour, including internal meetings, travel and revisions that were not billed. Compare it with the full cost per hour, including salary, employer costs and a share of overheads, not just with the charge-out rate. Look at the spread as well as the average, as a few very poor projects can pull the figure down. Use the results to set minimum fees for each type of work.
Most owner-managed businesses don't, or they work it out in a way that flatters the result. We'll calculate it from your own numbers and show you what it's telling you.
Get a finance review
Strategic finance advisors for businesses that have outgrown bookkeeping and their accountants.
Copyright © 2026 Upscale Consultants Ltd.