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: