Wrap Rate Calculator

Formula

The formula to calculate the wrap rate is:

\[ WR = \frac{TC/hr}{LC/hr} \]

Where:

$ WR $ is the Wrap Rate
$ TC/hr $ is the Total Cost of the Project per Hour ($/hr)
$ LC/hr $ is the Cost of Labor per Hour ($/hr)

What is Wrap Rate?

A wrap rate is a multiple that, when multiplied by the hourly labor rate, yields a loaded labor rate. The loaded labor rate is the rate someone would charge a customer for work, and the base labor rate is the exact cost or rate of the labor needed to do the job. In other words, the multiple measures how much above the base labor rate a company is charging for its service or contract.

Example Calculation

Let's assume the following values:

Total Cost of the Project per Hour (TC/hr): $150/hr
Cost of Labor per Hour (LC/hr): $50/hr

Using the formula to calculate the wrap rate:

\[ WR = \frac{150}{50} = 3 \]

The wrap rate is 3.