Solvability

Wrap Rate Calculator

Enter 1.0000 under Direct Labor to calculate your multiplier. Then replace 1.0000 with your actual hourly rate to see your Billing Rate to the Government.

GovCon Indirect Rate Stack
Start with DL = 1.0000 to find your multiplier
Code Description Rate Amount
DL Direct Labor
Base hourly wage
FR Fringe
Applied to DL
%
0.3000
OH Overhead
Applied to DL + FR
%
0.0260
G&A G&A
Applied to DL + FR + OH
%
0.1989
FBLC Fully Burdened Labor Cost
DL + FR + OH + G&A
1.5249
FEE Fee
Applied to FBLC
%
0.1220
FBLF Fully Burdened Labor with Fee
Billing Rate to Government
1.6469
Wrap Rate Multiplier
1.6469×
Every $1.00 of direct labor bills at $1.6469 to the government

How to use this calculator

  1. Start with Direct Labor = 1.0000 to calculate your wrap rate multiplier.
  2. Adjust the rate percentages to match your actual indirect rates.
  3. FBLC (Fully Burdened Labor Cost) is your break-even floor — the minimum you must recover before any profit.
  4. Add your Fee on top of FBLC to get your Billing Rate to the Government (FBLF).
  5. Once you know your multiplier, replace 1.0000 with any hourly wage to see the fully-loaded billing rate for that employee.