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True Hourly Rate Calculation
Updated over a week ago

Previously, the hourly cost was calculated based on an estimate set under a person's cost rate.

For example, if a person was assigned 8 hours a day / 5 days a week in their cost rate, those 40 hours were multiplied by 4 (for the month) to get the estimated number of monthly hours.
In return, the hourly cost was based on that estimate where the monthly salary would be divided by 160 hours using the example above:

In the new calculation, we calculate the number of working days in a month (since not all months have 20 working days due to different lengths, starting days, or holidays), and then we divide a person’s cost by that number.

The new calculation applies only to “fixed” cost types (weekly, bi-weekly, monthly, and annually).

An expandable table under the Person profile in the Cost rates tab is available to see how hourly costs changed over time:

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