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//// Business · Contracting

Contractor Overhead Rate

Enter your direct labor, indirect costs, fringe benefits, and G&A — get your overhead rate, billing multiplier, and the per-$100 cost breakdown used in government contracting proposals and consulting bids.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600

Cost Structure

Overhead Rate
30.0%
% of direct labor
G&A Rate
15.0%
% of direct labor
Billing Multiplier
2.00×
× your direct labor cost
Annual Billing Rate
$240,000
15.0% profit included

Per $100 of Direct Labor

billing rate → $200.00
Direct Labor
$100
Fringe Benefits
$25(25.0%)
Overhead
$30(30.0%)
G&A
$15(15.0%)
Profit
$30(15.0%)
Total Billing Rate$200.00

Rate Summary Table

Cost PoolAnnual $Rate
Direct Labor$120,000Base
Fringe Benefits$30,00025.0%
Overhead (Indirect)$36,00030.0%
G&A$18,00015.0%
Burdened Labor$204,0001.70×
Profit$36,00015.0%
Billing Rate$240,0002.00×

Bottom line: For every $100 of direct labor, you need to bill $200.00 to cover all costs and hit your 15.0% profit target.