# What is bill rate?

Source: https://launch-rec.com/glossary/bill-rate. Category: Commercials. Market: US and UK.

Also called: charge rate, client rate.

## Definition

The hourly rate an agency charges its client for a contractor. It has to cover the pay rate, employment burden, funding cost and the agency's margin.

## In practice

Build a bill rate from the bottom up, never from a competitor's quote. Take the pay rate, add employer burden, then divide the fully burdened cost by one minus your target margin. A $30.00 pay rate at 12.5% burden costs $33.75; at a 25% target margin the bill rate is $45.00.

Rates are local. The same nursing or software role can differ 30% between metros, which is why LAUNCH. publishes a Bill Rate Index built on 2025 wage data rather than asking founders to guess.

## Worked example

Burdened cost $33.75 ÷ (1 − 0.25) = $45.00 bill rate.

## Related terms

- https://launch-rec.com/glossary/pay-rate
- https://launch-rec.com/glossary/gross-margin
- https://launch-rec.com/glossary/employment-burden
- https://launch-rec.com/glossary/markup