Wrap Rate

The multiplier converting direct labor cost into a billed rate.

Definition

The wrap rate combines fringe, overhead, general and administrative expense, and fee into a single factor applied to base salary cost.

Why it matters

Wrap rate competitiveness usually decides services awards more than any technical differentiator.

Example

A $50/hour salary at a 2.1 wrap rate bills at $105/hour.

Related terms

Stop translating solicitations by hand

RFP Scribe reads the solicitation, builds the compliance matrix, and drafts a response from your Company Brain in minutes.

Start free

Services that help with this

Buy just the piece you need — most start at a few dollars, no subscription required.

Browse all services