Wrap Rate

Fully loaded labor rate including all indirect costs and profit.

Definition

A wrap rate (or fully burdened rate) is a labor rate that includes all indirect costs (overhead, G&A) and profit/fee. It's calculated: Direct Labor × (1 + Overhead%) × (1 + G&A%) × (1 + Fee%). This is the actual rate charged to the government.

Also Known As

  • Fully Burdened Rate
  • Loaded Rate