XL EagleWrap Rate
Wrap Rate. A wrap rate is the number you multiply a worker's base wage by to get a full price per hour. It wraps in fringe benefits, overhead, G&A and profit.
A wrap rate of 1.8 means every $1 of wages becomes $1.80 billed. Knowing your true wrap rate keeps you from underbidding labor-heavy work.
Why it matters to a small contractor
Many small trades price labor by gut feel. Working out your real wrap rate once, with your accountant, makes every future bid faster and safer.
Example
A technician earns $30 per hour. With fringe, overhead, G&A and profit, the shop's wrap rate is 1.9, so it bills $57 per hour.
Wrap Rate: common questions
What is a normal wrap rate?
It varies a lot by trade, location and business size. Base it on your actual books, not an industry rule of thumb.
Is wrap rate the same as markup?
Not quite. Wrap rate covers all indirect costs plus profit on labor. Markup is often used for materials or sub costs.
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