Day Rate

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.

BREAKING DOWN '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

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