Average Billable Rate (ABR)
A profitability metric calculated by dividing total revenue by total billable hours, showing the effective hourly rate the agency actually earns.
Example
An agency bills $50,000 in a month and logs 400 billable hours, resulting in an ABR of $125/hour. Comparing this to their blended cost of $65/hour confirms healthy margins. When ABR drops to $95 the next month, they investigate and find a fixed-fee project ran over scope.
Related article:
Agency Pricing: How to Choose the Right Pricing Strategy
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