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# What Is the Difference Between Hourly Cost and Hourly Price in Labor Types?

**Overview**
When configuring Labor Types in X-PRO, you will see two important fields: **Hourly Cost** and **Hourly Price**. Understanding the difference between these values helps you accurately track labor expenses and calculate profitability on service calls.
## Hourly Cost: 

**Hourly Cost** represents the internal cost of labor to your company for each hour worked.

This typically includes:
* Employee wages
* Contractor costs
* Labor-related overhead expenses
### Example
If a technician costs your company **$30 per hour**, the **Hourly Cost** should be set to **$30**.
## Hourly Price

**Hourly Price** represents the amount billed to the customer for each hour of labor. This is the rate that appears on quotes, invoices, or service call billing.
### Example
If you charge your customer **$75 per hour** for a technician's work, the **Hourly Price** should be set to **$75**.
## How They Work Together

The difference between the Hourly Price and Hourly Cost determines your labor profit margin.

| Labor Type | Hourly Cost | Hourly Price | Profit per Hour |
| ---- |
| Technician | $30 | $75 | $45 |
| Programmer | $50 | $120 | $70 |
| Project Manager | $60 | $100 | $40 |

## Example Scenario

Suppose a technician works for 4 hours:
* **Hourly Cost:** $30/hour
* **Hourly Price:** $75/hour

### Calculation

* Total Labor Cost = 4 × $30 = **$120**
* Total Labor Revenue = 4 × $75 = **$300**
* Labor Profit = $300 − $120 = **$180**

## Benefits of Using Both Fields

* Track actual labor expenses.
* Calculate project and service call profitability.
* Generate accurate customer billing.
* Compare labor costs against revenue for better business insights.

## Summary

* **Hourly Cost** = What the labor costs your company.
* **Hourly Price** = What you charge your customer for that labor.
* The difference between the two values determines your labor profit on service calls and projects.