Day Rate

AAA

DEFINITION of 'Day Rate'

The price/cost of a particular service for a day's period. In some markets it is referred to as "per diem" (cost that an organization will pay for one days' work) and often translates to a 7.5 hour work day. Some purchasing organizations prefer a quoted day rate instead of an hourly rate for services.

INVESTOPEDIA EXPLAINS 'Day Rate'

Common examples of a day rate would be:

- the rate of pay for a day's manual labor by a worker
- the price for a hotel room when no overnight stay is required/utilized
- the quoted price for contractor work done onsite for a client

RELATED TERMS
  1. Business Expenses

    Any expenses incurred in the ordinary course of business. Business ...
  2. Per Diem Payments

    Generally, a specified amount that employers will pay to employees ...
  3. Earned Income

    Income derived from active participation in a trade or business, ...
  4. Personal Finance

    All financial decisions and activities of an individual, this ...
  5. Prime Rate

    The interest rate that commercial banks charge their most credit-worthy ...
  6. Remuneration

    Payment or compensation received for services or employment. ...
Related Articles
  1. Freelance Careers: Look Before You Leap
    Entrepreneurship

    Freelance Careers: Look Before You Leap

  2. Top 6 Ways To Recession-Proof Your Job
    Personal Finance

    Top 6 Ways To Recession-Proof Your Job

  3. Trying On Potential Employers
    Professionals

    Trying On Potential Employers

  4. 6 Ways Mentors Elevate Your Career
    Professionals

    6 Ways Mentors Elevate Your Career

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center