> ## Documentation Index > Fetch the complete documentation index at: https://docs.timetracker.in/llms.txt > Use this file to discover all available pages before exploring further. # Rates overview > How rates work in TimeTracker: billable rates versus cost rates, where you set them, how one rate is chosen for an hour, and who is allowed to see each. A rate turns an hour of work into money. TimeTracker keeps two of them for every person – a **billable rate** (what you charge) and a **cost rate** (what that hour costs you). ## What a rate does Every time entry is priced the moment it is saved. TimeTracker looks up the rates that apply to that person on that date, multiplies them by the hours, and stores the result on the entry. That one step is what makes the rest of the product work: | Number | Comes from | Used by | | -------------- | --------------------- | ---------------------------------------------------------------------- | | Billable value | Billable rate × hours | Invoices, budgets, reports | | Cost | Cost rate × hours | Profitability, margin, cost reports | | Margin | Billable value − cost | [/budgets/profitability-and-margin](/budgets/profitability-and-margin) | ## The two rates What you charge a client for one hour of this person's time. What that same hour costs your business. Sarah Lin at Northwind Studio is billed at **$100/hour** and costs **$45/hour**. Three hours of her time are worth **$300** to the client and cost Northwind **$135**. The margin is **\$165**. ## Where rates live There are four places a billable rate can be set. Only one of them can hold a cost rate. | Level | What it is | Where you set it | Holds a cost rate? | | ------- | ---------------------------------------------- | ---------------------------------------------------- | ------------------ | | Task | A rate attached to one task | Not editable from the task form today | No | | Project | One person's rate on one project | Project → **Settings** → **Team** → **Project rate** | No | | Person | That person's normal rate everywhere | **Settings** → **Rates** | **Yes** | | Client | A flat rate for everyone on that client's work | The client record → **Default rate (per hour)** | No | A cost rate is a property of the person, not of the work. Someone costs you the same whoever they are working for, so there is no project or client cost override. See [/rates/cost-rates](/rates/cost-rates). ## How one rate is picked When several levels have a rate, the most specific one wins: **Task → Project → Person → Client** If no level has a rate, the hour has no billable value. TimeTracker never guesses a rate and never falls back to zero. The full rules, including what happens with different currencies, are on [/rates/how-rates-are-chosen](/rates/how-rates-are-chosen). ## Rates are dated, and history never changes Every rate you set has an **Effective from** date. Setting a new rate adds a new dated row – it never overwrites the old one. That matters because a time entry keeps the rate it was recorded at. Raising Sarah's rate in July does not re-price the work she did in June, and it does not restate an invoice you already sent. See [/rates/rate-snapshots](/rates/rate-snapshots). Because entries snapshot their rate, a rate you set today only prices work recorded from its effective date onward. If you set a rate late, the time already tracked keeps whatever rate applied when it was saved. ## Who can see what Rates split into three separate permissions: | Capability | What it allows | Default roles | | ------------------ | -------------------- | ----------------------------- | | `rate.manage` | Set and remove rates | Owner, Admin, Project Manager | | `rate.viewBilling` | See billable rates | Owner, Admin, Project Manager | | `rate.viewCost` | See cost rates | Owner, Admin | Cost is a firewall, not a hidden column. A Project Manager who opens the rates page never receives a cost figure at all. See [/rates/rate-permissions](/rates/rate-permissions). ## Plans Billable rates are free. Setting a **cost** rate needs the `profitability` feature, which is on Pro. Cost figures already recorded stay readable if a workspace drops to Free. See [/concepts/plans-and-features](/concepts/plans-and-features). ## Common questions No. Time tracking works without any rates. The entries carry no billable value, so invoices and budgets have nothing to price against. Yes, and that is the normal setup. Rates are per person. Sarah is $100/hour, Jonas is $120/hour, Ana is \$80/hour. Yes. Set a **Default rate** on the client record and leave the person rates for everything else. See [/rates/project-and-client-rates](/rates/project-and-client-rates). Each rate carries its own currency. The winning rate decides the currency of that entry. See [/rates/currencies-and-exchange-rates](/rates/currencies-and-exchange-rates). Yes. Open the person's rate history and remove the row. Time already tracked keeps the rate it was recorded at. See [/rates/set-a-person-rate](/rates/set-a-person-rate). ## Related guides What you charge, in detail. What an hour costs you. The exact precedence order. Step by step. Why history never moves. Which hours can be charged at all.