Cost rate vs bill rate

Know the gap between cost rate and bill rate on every hour.

Keito connects reviewed billable hours to both the rate you charge and the rate the work costs to deliver, so the margin behind each client, project, and person is visible before the quarter closes.

$49 USD
Flat team plan from
0
Per-seat billing surprises
14 days
Trial workspace
app.keito.ai / rates

Margin review

Meridian Consulting

Avg gross margin

44%

Active work

24

Reviewed

91%

Ready to bill

$18.4k

Time captured with context

cost rate vs bill rate

Live

Billing review complete

Client and project checked

Done

Invoice evidence ready

Approved summary prepared

Next
01

Built around the work before the invoice

cost rate vs bill rate needs more than a timer. The billing record has to keep client, project, approval, and invoice context together before the work reaches finance.

Capture the work while it is fresh

Record billable time by client, project, task, and person so the billing source of truth is created during delivery, not reconstructed at month end.

Review before anything reaches the client

Approve entries, expenses, and budget movement in one place so managers can catch missing context before finance creates the invoice.

Turn approved time into billing evidence

Use the same tracked data for invoices, client summaries, margin reviews, and internal capacity conversations.

02

Margin you can defend

A bill rate without a cost rate is only half the picture

Plenty of firms know exactly what they charge per hour and only roughly what that hour costs them — and the gap between the two is the entire margin. The bill rate is what appears on the engagement letter; the cost rate is the fully loaded cost of the person doing the work, including salary, benefits, and overhead. Profitability lives in the spread, but most teams cannot see it per engagement because hours sit in a timer, salaries sit in a spreadsheet, and the two are only reconciled long after the work is done. By then a client that bills at a healthy headline rate but is staffed with expensive senior time can already be running thin, and nobody noticed. Keito brings the two rates together on the same reviewed record. Every hour is captured against a client, project, and the person who delivered it, so once a cost rate is attached to each contributor, Keito can show the realized margin — bill rate minus cost rate — by client, project, and role. Engagement leads can see which work is genuinely profitable, which fixed-fee jobs have drifted into low-margin territory, and where to adjust staffing or renegotiate the rate, while the spread stays defensible because it is built from reviewed hours rather than estimates.

Attach both a cost rate and a bill rate to reviewed hours by person and project

See realized gross margin (bill rate minus cost rate) by client, project, and role

Spot engagements running thin on expensive senior time before the quarter closes

Workflow fit

Margin between cost rate and bill rate

Keito keeps cost rate vs bill rate connected to client, project, billable status, approval, and invoice context before the work reaches finance.

Attach both a cost rate and a bill rate to reviewed hours by person and project

See realized gross margin (bill rate minus cost rate) by client, project, and role

Spot engagements running thin on expensive senior time before the quarter closes

03

What Keito adds to cost rate vs bill rate

Billing-ready time records

Keito keeps time, expenses, approvals, and client context together so the invoice is backed by the same record your team used to deliver the work.

  • Client and project tagging
  • Billable and non-billable separation
  • Approval status before invoice review

Flat pricing for growing teams

Invite the people who capture, review, and explain client work without turning each new contractor or reviewer into another per-seat charge.

  • Solo from $19 USD/month
  • Flat-rate team plans from $49 USD/month
  • Room for finance and delivery reviewers

Project visibility before the invoice

Spot budget drift, missed entries, and low-margin work before the month closes and the client conversation becomes harder.

  • Project budget views
  • Team utilization context
  • Exportable client summaries
04

Compare the workflow

The difference is not just recording time. It is whether the record can support billing, project decisions, and client conversations.

AreaKeitoTypical setup

Margin between cost rate and bill rate

Keito keeps cost rate vs bill rate tied to clients, projects, billable status, approvals, and billing summaries in one workspace.

Typical setups capture time in one tool and rebuild the billing explanation later from exports, comments, or spreadsheet cleanup.

Review before invoicing

Managers review entries before they become invoice evidence, so missing context is fixed internally rather than during a client dispute.

Raw timer exports usually reach finance before delivery leads have confirmed whether the work is billable, complete, or client-ready.

Predictable team pricing

Flat-rate plans let delivery staff, reviewers, contractors, and finance users participate without per-seat pricing friction.

Per-seat time trackers make teams choose between clean billing participation and controlling tool spend.

05

Related solution pages

06

Useful reading

Frequently asked questions

What is the best way to manage cost rate vs bill rate?

The best way to manage cost rate vs bill rate is to capture work at source, attach it to the right client and project, review it before invoicing, and use the reviewed record as billing evidence. Keito is built around that workflow so time, approvals, and invoice context stay connected.

Can Keito help with cost rate vs bill rate?

Yes. Keito helps with cost rate vs bill rate by tracking work by client, project, task, person, billable status, and review state, then turning approved records into client-ready summaries. That makes the data useful for billing, profitability, and client reporting rather than just attendance.

How is Keito different from a generic timer for cost rate vs bill rate?

Keito is different because it treats time as billing evidence, not just duration. A generic timer records how long something took; Keito records who did the work, where it belongs, whether it was reviewed, and how it should appear in client billing context.

How do you turn cost rate vs bill rate into invoice-ready evidence?

Turn cost rate vs bill rate into invoice-ready evidence by reviewing every entry for client, project, billable status, approval state, and billing notes before finance creates the invoice. Keito keeps those checks in the same workflow so the client summary is backed by reviewed work, not a late spreadsheet cleanup.

What should a client-ready cost rate vs bill rate report include?

A client-ready cost rate vs bill rate report should include the client, project, task, contributor, billable status, approval state, and a concise explanation of the work completed. Keito keeps those details connected so reports can answer client questions without exposing internal delivery noise.

03

Start solo.Add people when you need them.

Solo includes 1 licensed user, unlimited AI agents, Mac desktop and iOS apps, Stripe payments, and standard CSV and Excel exports. Pro adds your team. Business adds integrations, planning, advanced reporting, and stronger controls.

Solo

1 licensed user

For independent consultants, freelancers, and small studios running work with AI agents.

$19USD /mo

Start Solo
1 licensed user
Unlimited AI agents
Mac desktop and iOS apps
API access and API keys
Time, expenses, projects, and invoices
Stripe invoice payments
CSV and Excel data export
Most popular

Pro

Team collaboration

For teams that need shared workspaces, approvals, and team-level project visibility.

$49USD /mo

Start Pro
Unlimited licensed users
Everything in Solo
Team management and invites
Timesheet and expense approvals
Team reports and utilization
Per-member billing rates
Manager permissions

Business

Advanced operations

For organizations that need integrations, planning, advanced reporting, and stronger controls.

$199USD /mo

Start Business
Everything in Pro
Xero and QuickBooks
Airtable, calendar, and Jira imports
Planning and capacity
Advanced report exports
Custom roles and SSO
Priority support
Agents are included

AI agents do not require licenses on any plan.

API on every paid plan

Solo, Pro, and Business can use API keys for agent workflows.

Exports on every plan

Solo, Pro, and Business include standard CSV and Excel data export.

Build a cleaner billing record for finance leads, principals, and engagement managers who need the true margin between what an hour costs to deliver and what it bills at.

Start with Solo, add people on Pro when you need reviewers or collaborators, and see how Keito turns tracked effort into clearer reports.

Track cost rate vs bill rate in Keito