How is a ProPay calculated when the budget is a rate?
Walk through the math when budget = rate × quantity (like $5/sq ft).
Purpose
Rate-based budgets are for unit-based work. You set a rate (like $5 per square foot) and a quantity. Protiv multiplies them to get the budget, then compares against actual labor.
This article walks through the math.
When To Use This
Use this when:
- Your work is measured in units (sq ft, linear ft, panels, fixtures, etc.)
- You quote customers per-unit pricing
- You want bonuses to scale with the size of the work
The Formula
Budget = Rate × Quantity
Actual labor cost = Total hours × combined wage rate
Saved labor = Budget - Actual labor cost
Bonus pool = Saved labor × split_job_savings %
Worker bonus = Bonus pool × pool split for that role
Worked Example
Job: Install hardwood flooring.
- Budget type: Rate
- Rate: $2.50/sq ft
- Quantity: 1,200 sq ft
- Budget = $2.50 × 1,200 = $3,000
- Crew: 3 workers, combined wage rate $75/hr
Crew finishes in 35 hours.
- Actual labor = 35 × $75 = $2,625
- Saved labor = $3,000 - $2,625 = $375
Split 50/50 → worker share = $187.50
Pool: 80% crew, 10% lead, 10% manager:
Where the Quantity Comes From
Two paths:
- From the integration — Aspire / Jobber / etc. has a quantity field that syncs in
- Manual — You enter it on the ProPay
Material tracking can also feed quantity automatically. If you've got material tracking enabled, the quantity updates as materials get installed.
When Rate Is the Right Type
Rate is great for:
- Flooring, tile, paint, drywall, sod (anything per-square-foot)
- Linear-foot work (fence, gutter, baseboard)
- Per-panel or per-fixture work
- Anything you bill by the unit
Don't use rate when:
- Work is measured in time (use hours instead)
- Work is fixed-price regardless of quantity (use amount or contract price)
Common Mistakes & How To Fix Them
"Quantity didn't update when material got installed" Material tracking may not be wired up. See the article on Material Tracking.
"Rate budget came out way too high or low" Verify the rate per unit. A typo from $2.50 to $25.00 changes things fast.
"I don't know what the quantity should be" Quantity should match what you billed the customer for. Look at the invoice.
Related Articles
- How is a ProPay calculated? (Hours budget type)
- How does Material Tracking work?
- What are the 4 bonus distribution types?