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Understanding Your Effective Hourly Rate (EHR)
Understanding Your Effective Hourly Rate (EHR) Knowledge Base Article Category: Profitability Metrics Difficulty: Beginner Reading Time: 4 minutes What is Effective Hourly Rate? Your Effective Hourly Rate (EHR) is the most important metric for sole traders. It answers one critical question: "What am I really earning per hour after all costs?" Unlike your base hourly rate, EHR accounts for: Travel time (non-billable hours) Your overhead share (rent,
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