# Cost rates

Set what each person costs you per hour, and their overtime multiplier, so timesheets and job costing show real labour cost.

A cost rate is what an hour of someone's time costs your business. It isn't what you charge the customer.

1. Open **Settings → Users**.
2. On the person's row, open the menu and select **Cost rates**.
3. Select **Add rate**.
4. Enter the date it applies **From**, the **Cost per hour** and the **Overtime ×** multiplier, for example 1.5.
5. Save.

Time from that date costs at the new rate. Earlier time keeps the rate it had, so a pay rise doesn't change old jobs.

Someone with no rate uses the cost on your default labour rate. If there's neither, job costing warns that some time has no cost rate.

Only people who can see costs and margins see cost rates.