1. What is Fully Burdened Rate?

The Fully Burdened Rate represents the total cost of an employee or resource, including base pay/salary plus all associated overhead costs (benefits, taxes, equipment, facilities, etc.). It's used for accurate cost estimation and project budgeting.

2. How Does the Calculator Work?

The calculator uses the burdened rate formula:

Where:

• \( \text{Base} \) — Base rate in USD per hour
• \( \text{Burden \%} \) — Percentage of overhead costs

Explanation: The formula calculates the total cost by adding the overhead percentage to the base rate.

3. Importance of Fully Burdened Rate

Details: Understanding the fully burdened rate is essential for accurate project costing, contract pricing, and financial planning. It ensures all indirect costs are accounted for in project budgets.

4. Using the Calculator

Tips: Enter the base rate in USD/hour and the burden percentage. Both values must be positive numbers (burden % can be zero).

5. Frequently Asked Questions (FAQ)

Q1: What's included in burden percentage?
A: Typically includes benefits (health insurance, retirement), payroll taxes, equipment, facilities, training, and other overhead costs.

Q2: How is burden percentage determined?
A: It's calculated by dividing total overhead costs by total labor costs, often ranging from 30% to 80% depending on organization and industry.

Q3: Why use hourly rates for this calculation?
A: Hourly rates make it easier to allocate costs to specific projects or tasks and compare different labor categories.

Q4: When should I use fully burdened rates?
A: Essential for government contracting, project proposals, cost estimates, and when determining true cost of employees or resources.

Q5: How often should burden rates be updated?
A: Typically reviewed annually to reflect changes in benefits costs, tax rates, and other overhead expenses.