A wrap rate is a crucial metric in cost management and pricing, particularly in service industries, IT outsourcing, and managed services. It represents the total cost of employing an individual, including direct salary and all associated overheads. This comprehensive cost is then used to determine a fair and profitable billing rate. Understanding your wrap rate ensures that your pricing adequately covers all expenses and contributes to your business's profitability.
Your Wrap Rate:
This is the total cost of employing an individual, including direct labor, benefits, and overheads.
function calculateWrapRate() {
var directLaborCost = parseFloat(document.getElementById("directLaborCost").value);
var benefitsCosts = parseFloat(document.getElementById("benefitsCosts").value);
var overheadCosts = parseFloat(document.getElementById("overheadCosts").value);
var resultElement = document.getElementById("wrapRateResult");
if (isNaN(directLaborCost) || isNaN(benefitsCosts) || isNaN(overheadCosts) ||
directLaborCost < 0 || benefitsCosts < 0 || overheadCosts < 0) {
resultElement.textContent = "Please enter valid positive numbers for all fields.";
return;
}
var totalCost = directLaborCost + benefitsCosts + overheadCosts;
resultElement.textContent = "$" + totalCost.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
}