The Average realized hourly rate report lets you look at the realized hourly rate (also known as the 'effective rate') from different angles. By comparing the rate against the number of hours, you can benchmark projects against each other and assess whether a project was profitable — a gross margin of €1,000 means something different for a small project than for a large one.
Tip: This report is primarily designed to evaluate fixed prices on completed, invoiceable projects. Set Project status to closed and Invoice method to fixed price by default.
Report layout
At the top is the filter bar; below it a block with totals (Total), the chart By project end date, the charts By default service, By project manager and By client, and the Detail view (the table).
By project end date
Plots the realized hourly rate against the end date of projects. This shows you, per month, which rate was realized by projects that closed at that time.
By default service
Shows the realized hourly rate by default service, so you can see which type of work yields the highest rate.
By project manager
Shows the realized hourly rate by project manager, so you can identify differences in how projects are managed.
By client
Shows the realized hourly rate by client, so you can see with which clients you realize the best rate.
Detail view
The table shows, per project, how the realized hourly rate is composed. Use Columns to choose which columns are visible and Export to download the data.
Columns in the table
KPIs
KPI | Explanation |
Invoiced | The invoiced revenue of the project. |
Selling value of costs | The selling value of the costs spent. |
Invoiced excl. selling value of costs | The invoiced revenue minus the selling value of costs — the revenue from hours. |
Direct hours | The number of direct hours spent (excl. corrections). |
Average realized hourly rate | The invoiced revenue from hours divided by the direct hours. |
Average cost price of hours | The average cost price per hour. |
Quoted selling value | The quoted selling value of the project. |
Dimensions
Relation
Project
Revenue group
Default service
Service created on
Filters
Use Add filter to add filters; use Reset filters to clear everything. The report focuses on closed projects, because a project is only complete at that point — the end date reveals which rate was realized.
Dimensions
Project end date
Service created on
Project status
Project manager
Invoice method
Relation
Project
Revenue group
Default service
Project category
How the rate is calculated
The average realized hourly rate looks at the invoiced value from hours; costs are excluded because they do not come from your own hours. The formula:
(Invoiced − selling value of costs) / number of hours spent (excl. corrections)
Corrections are not included, because the focus is on what you actually invoice relative to the hours deployed — all hours spent are therefore counted.
Example: you work 100 hours at €100 per hour — a selling value of €10,000. If you write off 20 of those hours, you invoice €8,000 and realize a hourly rate of €80. The same applies if you had agreed on a fixed price of €8,000 for those same hours.
Recommendation: determine for your organization which rate you need to realize to remain financially healthy. Consider the productive hours, personnel costs, overhead costs, and the profit you want to achieve.