• VC is the value of the contract ($) • T is the number of hours needed for the contract (hrs) To calculate the contract rate, divide the value of the contract by the hours needed for the contract. ## How to Calculate Contract Rate? The following example problems outline how to calculate Contract Rate. Example Problem #1: 1. First, determine the value of the contract ($).
• The value of the contract ($) is given as: 5,000. 2. Next, determine the number of hours needed for the contract (hrs). • The number of hours needed for the contract (hrs) is provided as: 10. 3. Finally, calculate the Contract Rate using the equation above: CONR = VC / T The values provided above are inserted into the equation below and computed. CONR = 5000 / 10 = 500 ($/hr)

Example Problem #2:

For this problem, the variables required are provided below:

value of the contract (\$) = 6,000

number of hours needed for the contract (hrs) = 20

Test your knowledge using the equation and check your answer with the calculator..

CONR = VC / T = ?