Wrap rate calculator
Turn an hourly wage or salary into the rate you bill: add fringe, overhead, G&A and profit and see what each adds per hour.
Try:Help desk tech, $28/hrEngineer, $95,000/yrJanitorial crew, $17/hr
Nothing you type is stored.
Your bill rate appears here
bill rate = pay × (1 + fringe) × (1 + overhead) × (1 + G&A) × (1 + profit)
Get bids worth pricing, every morning — free
Federal bids for your trade and states, in one email.
No card. Unsubscribe in one click.
How to use the wrap rate calculator
- Enter hourly pay or salaryThe direct pay of the person doing the work. A salary is divided by 2,080 hours.
- Add your indirect ratesFringe, overhead and G&A as percentages from your books, and the profit you want.
- Use the bill rate in your bidThe breakdown shows what each part adds per hour; add hours to price the whole job.
Example: a help desk technician. $28/hr with 32% fringe, 40% overhead, 10% G&A and 8% profit → $56.92/hr fully burdened cost (wrap rate 2.03) and $61.47/hr to bill.
See this resultGood to know
Wrap rate vs. bill rate
The wrap rate is cost only: what $1 of pay costs once fringe, overhead and G&A are added. The bill rate adds profit on top; it is the hourly price in your bid.
Know your rates before you bid
Bidding with a guessed overhead is how small firms win work that loses money. Rebuild your rates from last year’s books at least once a year.
Questions
What is a wrap rate?
The wrap rate is your fully burdened labor cost divided by direct pay. A wrap rate of 2.0 means every $1 of hourly pay costs the company $2 once fringe benefits, overhead and general and administrative (G&A) costs are added. Profit is added on top to get the bill rate.
How is the wrap rate calculated?
Fringe is a percentage of direct pay. Overhead is applied to pay plus fringe, G&A to pay plus fringe plus overhead, and profit to the total cost. Wrap rate = (1 + fringe) × (1 + overhead) × (1 + G&A). Many companies use other pools and bases (for example overhead on direct labor only); use the same structure as your accounting system and your disclosed rates.
What goes into fringe, overhead and G&A?
Fringe: payroll taxes, health insurance, retirement, paid leave. Overhead: costs that support the people doing the work, such as supervisors, facilities, equipment and training. G&A: running the company as a whole, such as executives, accounting, HR, legal, insurance and bid and proposal costs.
How much profit can I add on a government contract?
On fixed-price work you set your price. On cost-reimbursement contracts the fee is negotiated. On cost-plus-fixed-fee contracts the law caps the fee at 10% of the estimated cost, 15% for experimental, developmental or research work, and 6% of the estimated cost of the project for architect-engineer services on public works (41 U.S.C. 3905 and 10 U.S.C. 3322, applied in FAR 15.404-4).
Why use 2,080 hours for a salary?
2,080 is 40 hours × 52 weeks, the usual base for turning a yearly salary into an hourly rate. If your fringe rate already covers paid leave and holidays, keep 2,080; if not, use your real productive hours.
Is this an official or audited rate?
No. It is arithmetic on the numbers you enter, to help you price a bid. For cost-type contracts your indirect rates must come from your accounting system and may be audited (for example by DCAA); talk to your accountant before you submit rates.
Arithmetic on the numbers you enter; not accounting or legal advice. Fee limits: 41 U.S.C. 3905 and 10 U.S.C. 3322 (FAR 15.404-4). PublicBeam is independent and not affiliated with any agency.