Setting Cost Rates and Billable Rates

This article is for Administrators. Learn more about permissions.
If you’re a Regular User, check out our Regular User resources.

Cost rates allow you to keep track of internal costs and billable rates allow you to generate a billable amount to charge your clients. By setting these rates, you can track your projects' progress and get paid for the work you do.

Cost Rates

The cost rate is your internal rate—what an employee or contractor costs you as a business. Cost rates apply to any time a person tracks to any project. 

Setting Up Cost Rates

  1. Go to Team.
  2. Click the Actions dropdown to the right of the team member you’d like to update.
  3. Select Edit.
  4. Go to their Basic Info (left menu).
  5. In the Cost Rate field, enter the person’s hourly cost rate, then click Update Info.

We’ll use these cost rates to automatically calculate your project costs. You’ll see that reflected on your project reports and in exported time reports. We’ll also use cost rates to calculate costs in the Contractor Report.

Each team member has one cost rate for all projects at a given time. If you need to update a person's cost rate (e.g. they get a raise), you can enter a date for the new rate to go into effect. You can learn more in our article about Changing Cost Rates and Billable Rates.

Who Can See Cost Rates

Only Administrators can see costs and export time reports that include costs.

Billable Rates

The billable rate is the external rate you charge your client. We use billable rates to calculate your invoice amounts. All people and tasks in Harvest can have default billable rates. You can also set custom billable rates per project.

Setting Default Billable Rates for People

You can set a default billable rate when you add a person to your team. You can also add a default billable rate later:

  1. Go to Team.
  2. Click the Actions dropdown to the right of the team member you’d like to update.
  3. Select Edit.
  4. Go to their Basic Info (left menu).
  5. In the Billable Rate field, enter the person’s hourly billable rate, then click Update Info.

This default billable rate will be automatically used for all projects (existing and new) that bill by Person Hourly Rate, except any projects where you’ve already set a project-specific custom rate for the person. 

If you need to update a person's default billable rate, you can enter a date for the new rate to go into effect. You can learn more in our article about Changing Cost Rates and Billable Rates.

Setting Default Billable Rates for Tasks

  1. Go to Manage > Tasks.
  2. Click the Edit button beside the task that you’d like to edit.
  3. Enter the billable rate, and save.

As with person rates, you can override the default task rate on any specific project by editing the project from your Projects section and changing the rate there.

Who Can See Billable Rates

Only Administrators and Project Managers with the optional permission to see billable rates and amounts can see billable rates.

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