Effective rate
Effective rate is the agreed price divided by original-scope time. Read it per phase or project, or blended across the budgeted projects on Profitability.
Price divided by hours on the agreed work
Effective rate tells you how much the agreed price earns per hour so far. For a budgeted phase, Phased divides the price by the hours spent on the agreed work. The agreed work is all the time on the phase that is not marked Out of scope. Time marked Out of scope is priced separately and does not lower this rate.
For example, a phase priced at 1,500 earns 125 per hour after 12 hours on the agreed work. After 20 hours, it earns 75 per hour. A phase with no budget has no fixed price: its value is hours × rate. So its effective rate is simply your hourly rate.
Phase, project and blended rates
- A phase row divides that phase's price by its hours on the agreed work.
- A project row adds up the prices of its included phases. Then it divides that sum by their combined hours on the agreed work. It does not average the phase rates.
- Current effective rate combines all the budgeted projects in the selected Active, Archived or All view. It adds up their prices and divides the sum by their combined hours on the agreed work. If some tracked work has no price, the card shows some unpriced. It does not count that work as zero.
These calculations use all the time ever tracked on each phase. The date range in Work value does not change the Budget performance rates.
Why a rate can be provisional
Early in a phase, the price is divided by only a few hours, so the rate can look unusually high. While budgeted work is still in progress, Phased marks its effective rate as provisional, because more time can still change it. The table shows a ~ after the rate, and the Current effective rate card starts its note with Provisional.
- A phase rate becomes final when you mark that phase done.
- A project rate becomes final when all its included phases are done.
- Archiving a project makes its project and phase rates final.
- When a row goes over budget, Phased shows the rate as a warning, not as provisional.
If you change the budget, the rate or the time on the agreed work, the effective rate updates. A report you already created does not change: it keeps its saved work, rates and amounts.