Hourly Rates

Overview

Hourly rates are the most common billing method in CADENSA. Charge clients based on actual time worked with flexible rate structures across workspace, users, projects, and tasks.

Why hourly rates:

• Fair billing - Pay for actual time worked
• Flexible scope - Handle changing requirements
• Transparent - Clear time-to-cost relationship
• Easy tracking - Automatic calculations
• Industry standard - Widely accepted

---

Setting Hourly Rates

Workspace-Level Rate

Default rate for entire workspace.

How to set:

1. Navigate to Workspace Settings
2. Click "Billing" tab
3. Find "Default Hourly Rate" section
4. Enter amount: €50.00
5. Select currency: EUR
6. Click "Save Settings"

Configuration:

┌─────────────────────────────────────────┐
│ Default Hourly Rate                     │
├─────────────────────────────────────────┤
│                                         │
│ Amount: [€50.00]                        │
│                                         │
│ Currency: [EUR ▼]                       │
│                                         │
│ Apply to:                               │
│ ☑ New projects (as default)             │
│ ☑ Existing projects without rate        │
│ ☑ Time entries without specific rate    │
│                                         │
│ [Save Settings]                         │
└─────────────────────────────────────────┘

When it applies:

• New projects automatically inherit this rate
• Time entries with no more specific rate
• Fallback for all billing calculations

Best for:

• Solo freelancers with consistent rate
• Simple billing structures
• Starting point before customization

---

User-Level Rate (PRO+)

Set default rate per team member.

How to set:

1. Navigate to Team → Members
2. Click on team member name
3. Go to "Billing" tab
4. Enter Hourly Rate: €50.00
5. Optional: Set Cost Rate (for profitability tracking)
6. Click "Save"

Configuration:

┌─────────────────────────────────────────┐
│ John Doe - Billing Settings             │
├─────────────────────────────────────────┤
│                                         │
│ Billable Hourly Rate:                   │
│ [€60.00]                                │
│                                         │
│ Cost Rate (Internal):                   │
│ [€40.00] (for profit margin calc)       │
│                                         │
│ Effective From: [2026-01-25]            │
│                                         │
│ Applies To:                             │
│ ● All projects                          │
│ ○ Selected projects only                │
│ [Select Projects...]                    │
│                                         │
│ Override workspace rate: ☑ Yes          │
│                                         │
│ [Save] [Cancel]                         │
└─────────────────────────────────────────┘

Billing vs Cost Rate:

• Billing Rate: What you charge clients (€60/hour)
• Cost Rate: Internal cost/salary (€40/hour)
• Margin: Billing - Cost = €20/hour profit

Rate by seniority example:

Team Rates:

Developers:
- Junior Dev (Mike): €35/hour
- Mid Dev (Sarah): €50/hour
- Senior Dev (John): €75/hour
- Lead Dev (Lisa): €90/hour

Designers:
- Junior Designer: €40/hour
- Senior Designer: €65/hour

Management:
- Project Manager: €85/hour
- Account Manager: €70/hour

Best for:

• Teams with different skill levels
• Agencies billing by seniority
• Hourly contract employees

---

Project-Level Rate (PRO+)

Set rate for all work on a specific project.

How to set:

1. Navigate to Projects
2. Click project name
3. Go to Settings → Billing
4. Enter Default Hourly Rate: €55.00
5. Optional: Override user rates checkbox
6. Click "Save"

Configuration:

┌─────────────────────────────────────────┐
│ Website Redesign - Billing Settings     │
├─────────────────────────────────────────┤
│                                         │
│ Project Hourly Rate:                    │
│ [€55.00]                                │
│                                         │
│ Rate Behavior:                          │
│ ● Default (can be overridden by         │
│ user-project or task rates)             │
│ ○ Enforce (override all user rates,     │
│ except task rates)                      │
│                                         │
│ Apply Rate To:                          │
│ ☑ All existing unbilled time entries    │
│ ☑ All future time entries               │
│                                         │
│ Billable by Default: ☑ Yes              │
│                                         │
│ [Save] [Cancel]                         │
└─────────────────────────────────────────┘

Use cases:

Premium Client:

Client: ACME Corp (premium)
Project Rate: €75/hour
(Higher than standard €50/hour workspace rate)

Discounted Client:

Client: Non-Profit XYZ
Project Rate: €30/hour
(Lower than standard €50/hour for charity work)

Fixed Client Rate:

Client: Retainer Agreement
Project Rate: €60/hour (fixed regardless of team member)

Best for:

• Client-specific pricing
• Retainer agreements
• Consistent project rates

---

User-Project Rate (PRO+)

Specific rate for a user on a specific project.

How to set:

1. Navigate to Project → Team
2. Find user in project team list
3. Click rate icon () next to user
4. Enter Hourly Rate: €65.00
5. Click "Save"

Alternative method:

1. Go to User Profile → Projects
2. Find project in user's project list
3. Click "Set Rate" for that project
4. Enter rate and save

Configuration:

┌─────────────────────────────────────────┐
│ User-Project Rate                       │
│ John Doe on Website Redesign            │
├─────────────────────────────────────────┤
│                                         │
│ Hourly Rate: [€65.00]                   │
│                                         │
│ Reason (optional):                      │
│ [Senior dev on critical client_____]    │
│                                         │
│ Effective From: [2026-01-01]            │
│                                         │
│ Standard Rates (for reference):         │
│ - User Rate: €50/hour                   │
│ - Project Rate: €55/hour                │
│ - Workspace Rate: €40/hour              │
│                                         │
│ This rate overrides all except Task     │
│ rates.                                  │
│                                         │
│ [Save] [Cancel]                         │
└─────────────────────────────────────────┘

Example matrix:

User	Default Rate	Website Project	Marketing Project	Internal
John	€50/h	€65/h (premium)	€50/h	€50/h
Sarah	€50/h	€60/h (premium)	€55/h	€50/h
Mike	€35/h	€45/h (mentored)	€35/h	€35/h

Best for:

• Senior team members on critical projects
• Premium billing for specific client-user combos
• Training/mentorship adjustments

---

Task-Level Rate (ENTERPRISE)

Specific rate for a task, regardless of who works on it.

How to set:

1. Navigate to Project → Tasks
2. Click task name
3. Scroll to "Billing" section
4. Enter Hourly Rate: €100.00
5. Add Rate Reason (optional)
6. Click "Save Task"

Configuration:

┌─────────────────────────────────────────┐
│ Emergency Bug Fix - Task Billing        │
├─────────────────────────────────────────┤
│                                         │
│ Task Hourly Rate:                       │
│ [€100.00]                               │
│                                         │
│ Rate Type:                              │
│ ● Hourly                                │
│ ○ Fixed (see Fixed Rates)               │
│                                         │
│ Rate Reason:                            │
│ [Emergency after-hours work_______]     │
│                                         │
│ Applies To:                             │
│ ☑ All time entries on this task         │
│ ☑ Overrides user-project rates          │
│                                         │
│ Standard Project Rate: €55/hour         │
│ Premium: +€45/hour (+81.8%)             │
│                                         │
│ [Save] [Cancel]                         │
└─────────────────────────────────────────┘

Use cases:

Emergency Work:

Task: Production Outage Fix
Rate: €150/hour (3x standard)
Reason: After-hours emergency response

Specialized Work:

Task: Database Migration
Rate: €125/hour
Reason: Specialized expertise required

Client Presentation:

Task: Executive Presentation
Rate: €100/hour
Reason: Senior-only deliverable

Best for:

• Emergency/urgent work
• Specialized expertise
• Premium deliverables
• After-hours billing

---

Rate Calculations

Simple Calculation

Formula:

Billable Amount = Duration (hours) × Hourly Rate

Example 1:

Time Entry:
- Duration: 2h 30m → 2.5 hours
- Rate: €50/hour

Calculation:
2.5 × €50 = €125.00

Example 2:

Time Entry:
- Duration: 45 minutes → 0.75 hours
- Rate: €60/hour

Calculation:
0.75 × €60 = €45.00

---

Hierarchy Calculation

CADENSA automatically selects the most specific rate.

Example:

Rates Set:
1. Workspace: €40/hour
2. User (John): €50/hour
3. Project: €55/hour
4. User-Project (John on Website): €65/hour
5. Task (Emergency): €100/hour

Time Entry Scenarios:

Scenario A: John works on Website project, normal task
→ Uses User-Project Rate: €65/hour

Scenario B: John works on Website project, Emergency task
→ Uses Task Rate: €100/hour (highest priority)

Scenario C: John works on Internal project
→ Uses User Rate: €50/hour

Scenario D: Mike (no user rate) works on Website project
→ Uses Project Rate: €55/hour

Scenario E: Mike works on Internal project (no project rate)
→ Uses Workspace Rate: €40/hour

---

Decimal Hours

CADENSA converts time to decimal hours automatically.

Conversion table:

Minutes → Decimal Hours
15 min → 0.25 hours
30 min → 0.50 hours
45 min → 0.75 hours
60 min → 1.00 hours

Examples:
1h 15m → 1.25 hours
2h 30m → 2.50 hours
3h 45m → 3.75 hours
4h 20m → 4.33 hours
5h 40m → 5.67 hours

Calculation with decimals:

Entry: 3h 20m = 3.33 hours
Rate: €60/hour
Billable: 3.33 × €60 = €199.80

---

Rate Changes

Changing Existing Rates

Impact on existing entries:

Default behavior:

• Existing time entries: Keep original rate (no change)
• New time entries: Use new rate

Example:

Timeline:

Jan 1-15:
- User Rate: €50/hour
- 40 hours logged → €2,000 billable

Jan 16 (Rate change to €60/hour):
- Previous 40 hours still: €2,000 (unchanged)
- New entries: Use €60/hour

Jan 16-31:
- 30 hours logged → €1,800 billable (new rate)

Total: 70 hours, €3,800 billable

---

Retroactive Rate Changes (ENTERPRISE)

Apply new rate to past entries.

How to:

1. Change rate (workspace/user/project/user-project)
2. Checkbox appears: "Apply retroactively?"
3. Select date range: From: 2026-01-01 To: 2026-01-31
4. Preview impact
5. Confirm application

Preview:

┌─────────────────────────────────────────┐
│ Retroactive Rate Change Preview         │
├─────────────────────────────────────────┤
│                                         │
│ Change: John Doe rate €50 → €60         │
│                                         │
│ Affected Period: Jan 1-31, 2026         │
│                                         │
│ Time Entries Affected: 47 entries       │
│ Total Hours: 85h 30m                    │
│                                         │
│ Old Billable: €4,275.00                 │
│ New Billable: €5,130.00                 │
│ Difference: +€855.00 (+20%)             │
│                                         │
│ This will update already-sent           │
│ invoices. Communicate with client.      │
│                                         │
│ [Cancel] [Apply Changes]                │
└─────────────────────────────────────────┘

Use cases:

• Salary increase retroactive to month start
• Client agreed to rate increase mid-project
• Correction of billing errors

Caution: Only use for unbilled or draft invoices. Changing billed amounts requires client communication.

---

Rate Visibility

Team Member View

What team members see depends on settings.

Option 1: Full Transparency

Settings → Privacy → Rate Visibility
☑ Show rates to all team members

Result: Everyone sees all rates

Option 2: Restricted (Recommended)

Settings → Privacy → Rate Visibility
☑ Show rates to Managers and above only

Result:
- Owner: Sees all rates
- Manager: Sees all rates
- Member: Sees only their own rate
- Viewer: Sees no rates

Option 3: Hidden

Settings → Privacy → Rate Visibility
☑ Hide rates from all except Owner

Result: Only Owner sees rates

---

Bulk Rate Management (ENTERPRISE)

Bulk Update Rates

Update multiple rates at once.

Scenario: Annual raise for entire team

1. Navigate to Team → Bulk Actions
2. Select "Bulk Update Rates"
3. Select users (or select all)
4. Choose update method:

• Increase by percentage: +10%
• Increase by amount: +€5/hour
• Set to specific rate: €55/hour

5. Preview changes
6. Apply

Preview:

┌─────────────────────────────────────────┐
│ Bulk Rate Update Preview                │
│ Method: Increase by 10%                 │
├─────────────────────────────────────────┤
│ User Old Rate New Rate Diff             │
├─────────────────────────────────────────┤
│ John Doe €50/h €55/h +€5                │
│ Sarah J. €50/h €55/h +€5                │
│ Mike Chen €35/h €38.50/h +€3.50         │
│ Lisa Park €60/h €66/h +€6               │
│ Tom Wilson €45/h €49.50/h +€4.50        │
├─────────────────────────────────────────┤
│ Total Increase: +€24.00/hour            │
│ Avg Increase: +€4.80/hour per person    │
└─────────────────────────────────────────┘

Apply retroactively? ☐ Yes ☑ No
Effective Date: [2026-02-01______]

[Cancel] [Apply Changes]

---

Reports & Analytics

Rate Reports

Analyze billing rates:

Report: Rate Distribution

📊 Hourly Rate Distribution

By User:
┌────────────────────────────────────────┐
│ User Rate Hours Revenue                 │
├────────────────────────────────────────┤
│ Lisa Park €90/h 120h €10,800            │
│ John Doe €75/h 168h €12,600             │
│ Sarah J. €60/h 152h €9,120              │
│ Tom Wilson €50/h 142h €7,100            │
│ Mike Chen €35/h 140h €4,900             │
├────────────────────────────────────────┤
│ Total 722h €44,520                      │
│ Average Rate: €61.66/hour               │
└────────────────────────────────────────┘

Report: Rate Utilization

📊 Rate Analysis - January 2026

Billable vs Non-billable:
- Billable Hours: 612h @ avg €65/h = €39,780
- Non-billable Hours: 110h @ avg €55/h = Not billed

Effective Rate:
- Total Hours: 722h
- Total Billed: €39,780
- Effective Rate: €55.10/hour

Realization Rate: 84.8%
(Billable / Total hours)

---

Best Practices

Do's

• Set workspace rate first - Always have a fallback
• Use user rates for skill tiers - Junior/mid/senior levels
• Apply project rates for clients - Client-specific pricing
• Reserve task rates for exceptions - Emergency, specialized work
• Document rate reasons - Why this specific rate?
• Review rates annually - Market rate adjustments
• Communicate changes - Inform team and clients
• Track cost rates - Know your profit margins
• Use bulk updates for raises - Save time (ENTERPRISE)

Don'ts

• Don't leave rates unset - Results in €0 billable
• Don't change rates mid-project - Without client approval
• Don't overcomplicate - Use simplest rate structure that works
• Don't use task rates everywhere - Reserve for special cases
• Don't forget to bill - Mark entries as billable
• Don't hide rates unnecessarily - Transparency (where appropriate)
• Don't use retroactive changes lightly - Can confuse billing

---

Troubleshooting

€0 billable amount

Problem: Time entry tracked but billable is €0.00.

Solutions:

1. Set workspace rate (Settings → Billing)
2. Verify entry marked as billable
3. Check that project allows billable entries
4. Re-save entry to recalculate

Unexpected rate applied

Problem: Entry using wrong rate.

Solution: Review rate hierarchy:

1. Check if task rate set (highest priority)
2. Check user-project rate
3. Check project rate
4. Check user rate
5. Check workspace rate (lowest priority)

Most specific rate always wins.

Cannot change rate

Problem: Rate field disabled/grayed out.

Causes:

• Insufficient permissions (need Manager+)
• Entry already invoiced
• Project archived

Solutions:

1. Request Manager/Owner role
2. Uninvoice entry to edit
3. Unarchive project

---

Next Steps

• Rate Management → - Understanding rate hierarchy
• Fixed Rates → - Flat-fee pricing
• Mixed Rates → - Combining hourly and fixed
• Project Budgets → - Budget tracking
• Reporting → - Analyze billable revenue

---

Need Help?

• Email: support@cadensa.io
• Community: community.cadensa.io
• FAQ: Hourly Rates FAQ