Commercial
Hourly rate vs day rate
Two billing units that behave differently at the edges.
Definition
Hourly billing charges for time actually recorded; day-rate billing charges a fixed amount for a working day regardless of whether it runs seven hours or nine. Day rates are common for dedicated people, hourly for support and overflow work.
Why it matters
The difference only bites at part-days. Under a day rate, a two-hour emergency on a Saturday can cost a full day; under hourly billing, a day of meetings costs less than you budgeted. Agree in writing how half-days, on-call and overtime are counted before the first one happens.
Related
Read next
Rate card
The provider's published prices by role and seniority.
Read the definition ›All-in rate
A single rate that already contains every cost the provider will charge.
Read the definition ›Utilisation rate
The share of paid hours a provider actually bills to clients.
Read the definition ›On-call rotation
A published schedule of who responds to incidents outside working hours.
Read the definition ›Next step
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