TABLE OF CONTENTS
- FICA
- FICA = 6.2
- FUI
- FUTA = 6.0%
- SUI
- Sales tax
- Cost of Risk
- Markup
- Hourly Wage / Annual Salary
- Total Hours/Week
- Training Wage
- Sick Time Hours
- Vacation Hours
- Holiday Hours
- Built-in Overtime Hours
- Estimated Turnover
- Number Of Full-time Employees
- Depreciable Life
- # of Vehicle
- Accessories (Light bar & Decals)
- Annual Maint. Cost
- Avg. Daily Miles
- Avg. Price of a Gallon of Gas
- Insurance (Per Month)
- Loan Terms (Months)
- Make
- Miles Per Gallon
- Model
- Oil, tires, fluids
- Sales Price
- Other Fees (one-time cost)
- Title, Registration, & Fees
- Total Est. HPW
- Total Loan Cost
- Total Loan + Ins. Cost
- Year
- Emergency Bill Rate
- Premium Bill Rate
- Profit Margin
- Straight Bill Rate
- Direct Billed
FICA
FICA = 6.2
The Federal Insurance Contributions Act (FICA) is a federal law that requires employers to withhold three different types of employment taxes from their employees’ paychecks. These taxes include Social Security taxes, Medicare taxes, and employers must withhold a Medicare surtax for certain high-paid employees.
FUI
FUTA = 6.0%
Most employers get a credit of up to 5.4%, reducing the actual rate to 0.6%.
The Federal Unemployment Tax Act (FUTA), also called Federal Unemployment Insurance (FUI) combined with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs.
Most employers pay both a Federal and a state unemployment tax. Only the employer pays FUTA tax; it is not deducted from the employee’s wages.
The tax applies to the first $7,000 you paid to each employee as wages during the year. The $7,000 is often referred to as the federal or FUTA wage base.
You Get the Full 5.4% Credit If:
- You pay state unemployment taxes (SUTA) on time – This includes all required payments to your state unemployment fund.
- Your state isn’t a “credit reduction state” – Some states lose part of the credit if they have unpaid federal unemployment loans. (This applies to California, New York, and the U.S. Virgin Islands).
Effective FUTA rate by state with a credit reduction:
State/Territory | Credit Reduction | Effective FUTA Tax Rate |
California | 0.9% | 1.5% |
New York | 0.9% | 1.5% |
U.S. Virgin Islands | 4.2% | 4.8% |
SUI
The State Unemployment Tax Act, known as SUTA, is a payroll tax employers are required to pay on behalf of their employees to their state unemployment fund. Some states require that both the employer and employee pay SUTA taxes. These contributions provide monetary support to displaced workers.
While it is generally known as the State Unemployment Tax Act, some states have different names for it such as State Unemployment Insurance (SUI) or Reemployment Tax.
Paying SUI on time helps businesses qualify for a FUTA tax credit, lowering federal unemployment taxes.
State | New Employer Rate | Experienced Employer Rate Range |
Alabama | 2.70% | 0.20% – 6.80% |
Alaska | 1.00% | 1.50% – 5.90% |
Arizona | 2.00% | 0.04% – 9.72% |
Arkansas | 2.00% | 0.10% – 5.00% |
California | 3.40% | 1.50% – 6.20% |
Colorado | 3.05% | 0.64% – 8.68% |
Connecticut | 2.20% | 0.10% – 10.00% |
Delaware | 1.00% | 0.30% – 5.40% |
District of Columbia | 2.70% | 2.10% – 7.60% |
Florida | 2.70% | 0.10% – 5.40% |
Georgia | 2.70% | 0.04% – 8.10% |
Hawaii | 4.00% | 0.21% – 5.80% |
Idaho | 1.00% | 0.28% – 5.40% |
Illinois | 3.53% | 0.75% – 7.85% |
Indiana | 2.50% | 0.50% – 7.40% |
Iowa | 1.00% | 0.00% – 7.00% |
Kansas | 1.75% | 0.00% – 6.65% |
Kentucky | 2.70% | 0.30% – 9.00% |
Louisiana | Varies | 0.09% – 6.20% |
Maine | 1.97% | 0.28% – 6.03% |
Maryland | 2.30% | 0.30% – 7.50% |
Massachusetts | 1.45% | 1.08% – 15.66% |
Michigan | 2.70% | 0.06% – 10.30% |
Minnesota | Varies | 0.20% – 9.10% |
Mississippi | 1.00% | N/A |
Sales tax
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. It’s calculated as a percentage of the purchase price and collected by the retailer at the point of sale, who then remits it to the government.
The revenue generated supports public services like education, transportation, and emergency response systems. Sales tax rates vary by state and locality, and some items may be exempt or taxed differently depending on regional laws.
Sales Tax Rates by State
State | State Sales Tax Rate |
Alabama | 4.00% |
Alaska | 0.00% |
Arizona | 5.60% |
Arkansas | 6.50% |
California | 7.25% |
Colorado | 2.90% |
Connecticut | 6.35% |
Delaware | 0.00% |
Florida | 6.00% |
Georgia | 4.00% |
Hawaii | 4.00% |
Idaho | 6.00% |
Illinois | 6.25% |
Indiana | 7.00% |
Iowa | 6.00% |
Kansas | 6.50% |
Kentucky | 6.00% |
Louisiana | 4.45% |
Maine | 5.50% |
Maryland | 6.00% |
Massachusetts | 6.25% |
Michigan | 6.00% |
Minnesota | 6.88% |
Mississippi | 7.00% |
Missouri | 4.23% |
Montana | 0.00% |
Nebraska | 5.50% |
Nevada | 6.85% |
New Hampshire | 0.00% |
New Jersey | 6.63% |
New Mexico | 5.13% |
New York | 4.00% |
North Carolina | 4.75% |
North Dakota | 5.00% |
Ohio | 5.75% |
Oklahoma | 4.50% |
Oregon | 0.00% |
Pennsylvania | 6.00% |
Rhode Island | 7.00% |
South Carolina | 6.00% |
South Dakota | 4.50% |
Tennessee | 7.00% |
Texas | 6.25% |
Utah | 4.85% |
Vermont | 6.00% |
Virginia | 5.30% |
Washington | 6.50% |
West Virginia | 6.00% |
Wisconsin | 5.00% |
Wyoming | 4.00% |
District of Columbia | 6.00% |
Note: These rates represent the base state sales tax and do not include additional local sales taxes that may apply.
Cost of Risk
Workers Comp = 1
General Liability = 0.5
Cost of Risk is the amount of insurance that you are paying for each dollar that you spend in payroll for General Liability and Workers’ Compensation insurance.
Insurance costs can vary significantly based on factors such as the specific services provided (e.g., armed vs. unarmed guards), the location of operations, the number of employees, and the company’s claims history.
It’s essential to consult with an insurance professional to obtain accurate quotes tailored to your security guard business’s unique circumstances.
Markup
Vehicle Markup = 25
Vehicle Markup is the extra cost added to a security guard’s hourly rate to cover the expenses of using a patrol vehicle.
It ensures your business isn’t losing money on vehicle-related costs while providing mobile security services.
What Costs Does It Cover?
- Fuel
- Insurance
- Maintenance & Repairs
- Depreciation (Vehicle wear & tear over time)
The vehicle markup depends on how much you spend per vehicle and how many hours it is used.
Vehicle markup typically adds 15% to 35% to the hourly rate. If unsure, estimate 25% as a safe vehicle markup percentage.
Hourly Wage / Annual Salary
For Unarmed Security Officers = 18
For Armed Security Officers = 21
Hourly wage is the amount you pay security officers per hour for working on a contract. This number helps set billing rates to ensure your contract covers labor costs.
Offering a fair and competitive salary isn’t just about keeping employees happy—it’s essential for business growth and success. In the security industry, where high turnover is common, paying guards too little can lead to constant hiring, training costs, and unreliable service, ultimately hurting your reputation and client satisfaction.
A good rule of thumb is to stay above industry averages while balancing profitability.
Average hourly wage for security officers by state
State | Average Hourly Wage |
Alabama | $14.00 |
Alaska | $25.10 |
Arizona | $17.40 |
Arkansas | $14.90 |
California | $21.61 |
Colorado | $19.00 |
Connecticut | $19.50 |
Delaware | $17.00 |
District of Columbia | $26.36 |
Florida | $17.30 |
Georgia | $15.50 |
Hawaii | $18.98 |
Idaho | $15.00 |
Illinois | $19.28 |
Indiana | $15.50 |
Iowa | $15.80 |
Kansas | $15.00 |
Kentucky | $14.50 |
Louisiana | $13.70 |
Maine | $17.30 |
Maryland | $22.81 |
Massachusetts | $20.00 |
Michigan | $15.00 |
Minnesota | $22.78 |
Mississippi | $12.00 |
Missouri | $16.00 |
Montana | $14.00 |
Nebraska | $14.50 |
Nevada | $17.76 |
New Hampshire | $17.70 |
New Jersey | $18.50 |
New Mexico | $15.00 |
New York | $21.28 |
North Carolina | $15.00 |
North Dakota | $16.50 |
Ohio | $14.50 |
Oklahoma | $14.00 |
Oregon | $17.00 |
Pennsylvania | $15.00 |
Rhode Island | $16.90 |
South Carolina | $14.00 |
South Dakota | $14.00 |
Tennessee | $14.00 |
Texas | $17.16 |
Utah | $15.00 |
Vermont | $17.80 |
Virginia | $17.00 |
Washington | $22.69 |
West Virginia | $12.00 |
Wisconsin | $15.00 |
Wyoming | $14.00 |
Note: These figures are averages and can vary based on factors such as experience, specific job duties, and regional economic conditions.
For the most accurate and current information, it’s advisable to consult the U.S. Bureau of Labor Statistics or local employment resources.
Total Hours/Week
Total hours = 168 (for 24/7 service)
Total hours is the number of hours security officers work per week to cover the contract’s requirements. This includes regular shifts and any built-in overtime.
Total hours directly affect payroll costs, determine how much overtime you need to pay, and help with scheduling to ensure all shifts are covered.
The total hours depend on the number of posts, the shift schedule, and whether the contract requires 24/7 coverage.
Common Weekly Hour Estimates for Security Contracts:
- Standard Business Hours (1 officer, 8-hour shifts, 5 days a week) → 40 hours per week
- Extended Hours (1 officer, 12-hour shifts, 7 days a week) → 84 hours per week
- 24/7 Coverage (1 post, rotating officers, 3 shifts per day) → 168 hours per week
- Multiple Posts (e.g., 2 posts, 24/7 coverage) → 336 hours per week
If unsure, 168 hours per week per post is a good starting point for a full-time security presence.
Multiply this by the number of posts to get your total weekly hours.
Training Wage
Training Hours = 16
Training hours are the total number of paid hours security officers spend learning the skills needed for a specific contract before they start working. This includes company policies, site procedures, emergency response, and customer service training.
A well-trained officer performs better, leading to higher client satisfaction and smoother operations.
The number of training hours needed depends on the job’s complexity. If unsure, a safe estimate is 16 hours for a basic unarmed officer to ensure they are adequately prepared while keeping costs reasonable.
Training Hours depending on job’s complexity:
- Basic unarmed post: 16-24 hours
- Armed or high-risk post: 32-40+ hours
- Supervisor training: 40+ hours
Sick Time Hours
Sick Time Hours = 24
Sick time hours are the paid hours a security guard can take off when they are sick or need medical leave.
These hours ensure employees get time to recover without losing income, and they help maintain workplace productivity by reducing the spread of illness.
Why is It Important?
- Legal Compliance: Many states require businesses to provide paid sick leave.
- Employee Satisfaction: Helps retain good security guards by offering job security and benefits.
- Operational Planning: Knowing sick time usage helps in scheduling backup guards to avoid staffing gaps.
Security companies typically provide 24 to 40 hours (3-5 days) per year.
If unsure, Estimate 1-2% of total hours worked per guard as sick time.
If your state has no sick leave law, offering 24 hours per year (3 days) is a reasonable starting point.
Sick Leave Requirements by State
State | Accrual Rate | Annual Usage Cap | Employer Coverage |
Arizona | 1 hour per 30 hours worked | 24 – 40 hours | Employers with fewer than 15 employees: up to 24 hours; 15 or more employees: up to 40 hours. |
California | 1 hour per 30 hours worked | 24 hours | All employers. |
Colorado | 1 hour per 30 hours worked | 48 hours | All employers. |
Connecticut | 1 hour per 40 hours worked | 40 hours | Employers with 50 or more employees; applies to service workers. |
Maine | 1 hour per 40 hours worked | 40 hours | Employers with more than 10 employees. |
Maryland | 1 hour per 30 hours worked | 40 hours | Employers with 15 or more employees; smaller employers provide unpaid leave. |
Massachusetts | 1 hour per 30 hours worked | 40 hours | Employers with 11 or more employees; smaller employers provide unpaid leave. |
Michigan | 1 hour per 35 hours worked | 40 hours | Employers with 50 or more employees. |
Minnesota | 1 hour per 30 hours worked | 48 hours | All employers. |
Nevada | 0.01923 hours per hour worked | 40 hours | Private employers with 50 or more employees. |
New Jersey | 1 hour per 30 hours worked | 40 hours | All employers. |
New Mexico | 1 hour per 30 hours worked | 64 hours | All employers. |
New York | 1 hour per 30 hours worked | 40 – 56 hours | Employers with 5-99 employees: up to 40 hours; 100 or more employees: up to 56 hours. |
Oregon | 1 hour per 30 hours worked | 40 hours | Employers with 10 or more employees; smaller employers provide unpaid leave. |
Rhode Island | 1 hour per 35 hours worked | 40 hours | All employers. |
Vermont | 1 hour per 52 hours worked | 40 hours | All employers. |
Washington | 1 hour per 40 hours worked | No explicit cap | All employers. |
Washington D.C. | 1 hour per 37-87 hours worked | 24 – 56 hours | Employers with 100 or more employees: up to 56 hours; 25-99 employees: up to 40 hours; 1-24 employees: up to 24 hours. |
Note: The information above is a summary and may not encompass all details or recent changes. Consult the specific state laws or legal counsel and verify local regulations to ensure full compliance
Vacation Hours
Vacation Hours = 40
Vacation Hours is the paid time off that security officers can take for rest, travel, or personal time. It’s part of employee benefits and helps with job satisfaction.
Most businesses offer 40-80 hours per year (1-2 weeks).
Holiday Hours
Holiday Hours = 48
Holiday Hours are the paid time for official holidays (for example, Christmas, New Year’s, or Independence Day) when guards might not work but still get paid OR when they work and earn extra pay.
Typically companies assign 6-10 days per year (48-80 hours), depending on internal policy.
Built-in Overtime Hours
Built-In Overtime Hours = 8
Built-in overtime hours refer to extra hours beyond 40 hours per week that security guards regularly work, leading to overtime pay (typically 1.5 times their regular hourly rate).
This happens often in security services where guards work long shifts or back-to-back coverage.
It’s important to include built-in overtime when calculating costs because overtime is more expensive, and failing to account for it can lead to underpricing your services.
If you’re unsure how much to include, a good estimate is 5-10 overtime hours per guard per week, or 10-15% of total hours worked.
Estimated Turnover
Estimated Turnover = 75
Estimated turnover is the percentage of security guards who leave your company in a year. This includes people who quit, get fired, or don’t show up.
High turnover means more hiring, training, and overtime costs. If too many guards leave, you spend more money replacing them and risk staff shortages. Factoring turnover into your costs helps you price services correctly.
Security guard turnover is high, usually 50% to 100% per year.
If it is a lower-paying position turnover could be as high as 100%. If it is a supervisory position or has a higher pay rate, then turnover may be lower.
If you’re unsure, use 75% as a safe estimate (meaning you replace 3 out of 4 guards each year).
Number Of Full-time Employees
The Number of Full-Time Employees refers to how many full-time security guards are needed to cover the total hours required for a contract. It’s calculated based on the total number of hours for the contract and the assumption that a full-time employee works 40 hours per week.
This helps determine staffing levels, payroll costs, and scheduling efficiency. It ensures you have enough guards to cover shifts without relying too much on overtime, which can increase costs. It also helps in pricing the contract correctly, so you’re not undercharging or overstaffing.
Even though this number isn’t something you manually enter into the OfficerBilling calculator, it’s a key factor in understanding how many security officers are needed to fulfill the contract smoothly and profitably.
Depreciable Life
Uniforms used daily = 12
Uniforms used every other day = 24
OfficerReports = 12
Cell Phone = 24
Computer = 48
Depreciable Life (Months) is the number of months you expect an item to last before it needs to be replaced.
Instead of considering the full cost upfront, the expense is spread over time to better understand the monthly cost of uniforms, phones, tracking software, and other necessary tools.
This helps with budgeting, ensures billing rates accurately cover long-term expenses, and prevents unexpected costs when replacements are needed.
# of Vehicle
# of Vehicle refers to the identification number or code assigned to a company vehicle, not the total number of vehicles in use.
This unique number helps track which patrol car is assigned to a specific contract or officer.
It is important for fleet management, maintenance records, and accountability, ensuring that vehicles are properly maintained and used only for authorized security operations.
Accessories (Light bar & Decals)
Accessories = 1200
Accessories refer to the extra equipment and markings added to a security vehicle to make it look and function as a patrol unit.
This includes things like a light bar on top of the car for visibility and company decals or logos on the sides.
These items help make the vehicle look professional and let people know it’s a security patrol.
Annual Maint. Cost
Annual Maint. Cost = 1500
Annual Maintenance Cost is the total amount of money you expect to spend in a year to keep a vehicle in good working condition. This includes routine services and minor repairs needed to make sure the vehicle stays safe, reliable, and ready for patrol use.
Including maintenance costs in your pricing helps make sure you’re not losing money over time. Vehicles that aren’t properly maintained can break down, leading to missed shifts, unhappy clients, and expensive emergency repairs.
Avg. Daily Miles
Avg Daily Miles = 50
Average Daily Miles refers to the number of miles a vehicle is expected to drive each day while being used for security services.
For general use, use 50 miles per day as a safe average when calculating vehicle-related costs.
This includes patrols around properties, driving between sites, or responding to incidents.
It’s important to take this into consideration because more miles mean more fuel, maintenance, and wear on the vehicle, all of which increase your costs.
Avg. Price of a Gallon of Gas
Avg. price of a gallon of gas = 3.75
Average Price of a Gallon of Gas is the local cost you pay for one gallon of fuel, which directly affects your vehicle expenses for security patrols.
Prices can vary by location and change over time, so using a current local average is key
If you’re not sure of your local gas price, a safe average to use in 2025 is $3.75 per gallon. This gives you a realistic estimate based on national trends. You can adjust it later based on your area’s actual price.
Insurance (Per Month)
Insurance = 200
Insurance (Per Month) refers to the monthly cost of the insurance premium for a company vehicle used in security services. This covers things like accidents, liability, theft, and damage, and it’s a key part of your vehicle-related expenses.
Since patrol vehicles are often on the road and may be used in higher-risk situations, commercial auto insurance is usually more expensive than personal vehicle insurance.
If you’re not sure what to enter, use $200 per month as an estimate for budgeting and pricing. This helps ensure you’re covering the cost of keeping your vehicles insured and legally on the road.
Loan Terms (Months)
Loan Terms = 48
Loan Terms refers to the number of months you’ll take to pay off the vehicle through financing.
If you’re not sure what to use, a good average is 48 months, which is a common term for commercial vehicle loans.
Accounting for how long you’ll be financing the vehicle allows you to accurately spread the cost over time and include that in your hourly billing rate or contract pricing.
Make
Make refers to the company or brand that manufactures the vehicle, such as Ford, Nissan, GMC, Kia, Toyota, and others. It simply identifies who built the vehicle and is used to track and manage your fleet more accurately.
Miles Per Gallon
Miles Per Gallon = 20
Miles Per Gallon (MPG) is the number of miles a vehicle can drive on one gallon of gas. It tells you how fuel-efficient the vehicle is. The higher the MPG, the less gas you’ll need to drive the same distance, which means lower fuel costs.
If you’re unsure of the exact MPG, a safe average for SUVs and patrol vehicles is 18–22 MPG. Use 20 MPG as a solid estimate.
Model
While the make is the brand (like Ford, Toyota, or Nissan), the model is the particular kind of vehicle (like Explorer, Camry, or Altima). In the context of vehicle expenses, listing the model helps you track and manage your fleet more accurately.
Different models have different costs, including fuel efficiency, maintenance needs, and insurance rates. Including the model also helps with record-keeping, vehicle assignments, and future replacement planning.
Oil, tires, fluids
Oil, tires, fluids = 750
“Oil, Tires, Fluids” refers to the ongoing maintenance costs needed to keep a vehicle running safely and reliably during a year. This includes oil changes, tire replacements or rotations, and topping off or replacing essential fluids like brake fluid, coolant, and windshield washer fluid.
These are part of your vehicle expenses because they occur regularly as the vehicle is used.
It’s important to include these costs when calculating your contract pricing because they add up over time and directly affect your profit margins. Ignoring them can lead to underpricing and unexpected expenses.
If you’re unsure what to estimate, a common average is $600–$800 per year per vehicle. This covers regular oil changes, tire wear, and fluid top-ups. To keep it simple, you can $750 annually as a solid estimate.
Sales Price
Sales price (new) = 35000
Sales Price refers to the base cost of the vehicle: the amount you pay for it before taxes, financing charges, registration, or other fees.
In the context of vehicle expenses for a security guard contract, the sales price is important because it’s the starting point for calculating monthly loan payments, depreciation, and overall vehicle costs. It helps you understand how much the vehicle is really costing your business and ensures those costs are factored into your billing rate.
If you’re estimating and don’t know the exact price, a good average for a new patrol-ready SUV or sedan is $30,000 to $40,000. For used vehicles, $15,000 to $25,000 is a reasonable range depending on age and condition.
Other Fees (one-time cost)
Other fees = 400
This field covers any additional costs that don’t fall under title, registration, or financing. These may include:
- Dealer documentation fees
- Vehicle delivery or shipping charges
- Emissions testing or smog checks
- Upfit fees (e.g., installing equipment not part of base accessories)
- Temporary permits or out-of-state transport fees
These are usually one-time expenses, and while they may seem minor individually, they can add up. Including them ensures your vehicle budget reflects the true upfront cost of getting the car patrol-ready.
If unsure, estimate $300–$500 for other fees to stay safe and realistic.
Title, Registration, & Fees
Title, Registration, & Fees = 400
This field covers the mandatory government costs required to legally own and operate the vehicle. These include:
- Title fee (proof of ownership)
- Vehicle registration (license plates and tags)
- State and local taxes or fees (sometimes based on vehicle weight or value)
These are one-time or annual fees that vary by state and must be paid to get the vehicle on the road legally. It’s important to include them because they’re unavoidable costs, and excluding them from your pricing can cut into your profits.
If you’re not sure what to enter, a common estimate is $200–$600 per vehicle, depending on your state.
Total Est. HPW
Total Est. HPW stands for Total Estimated Hours Per Week that a vehicle will be used for a security contract. This is the number of hours the vehicle is expected to be actively in service, such as patrolling, traveling between sites, or standing by for response.
By knowing how many hours the vehicle is in use, you can accurately divide its costs, like loan payments, insurance, and accessories, into an hourly rate that fits into your overall billing.
If you’re unsure, it’s best to estimate based on the total number of patrol hours required in your contract.
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Total Loan Cost
Total Loan Cost refers to the full amount you’ll pay over time to finance the vehicle, including both the loan payments and any sales tax added to the purchase.
It’s not just the vehicle’s sticker price—it’s what the vehicle will actually cost your company after you’ve finished making all your monthly payments.
OfficerBilling calculates this amount and gives you a complete picture of the real expense of financing a vehicle for your security contract.
By spreading the Total Loan Cost across the number of hours the vehicle is used, you can make sure your billing rate covers the full cost of owning and operating that vehicle.
Total Loan + Ins. Cost
Total Loan + Insurance Cost is the combined total of all the money you’ll spend on a vehicle over time, including the loan payments, sales tax, and insurance premiums.
OfficerBilling calculates this number to give you the full picture of what the vehicle will actually cost your company while it’s being financed and insured.
This ensures you’re charging enough in your contracts to cover these costs and maintain profitability. Ignoring insurance or taxes in your calculations can lead to underpricing your services and cutting into your margins.
Year
Year refers to the model year of the specific vehicle you’re using for the contract.
The year affects the vehicle’s value, maintenance needs, reliability, and insurance costs.
Including the vehicle’s year helps you make accurate cost estimates and keep good fleet records, which are important for budgeting, planning replacements, and tracking depreciation over time.
Emergency Bill Rate
Emergency Bill Rate = 2
Emergency Bill Rate is the higher hourly rate you charge a client during emergencies, such as last-minute guard requests, holiday coverage, or urgent situations. It reflects the extra cost and effort required to provide fast or after-hours service.
In the calculator, instead of entering a dollar amount, you input a multiplier—how many times higher the emergency rate is compared to your regular Straight Bill Rate.
Charging an adjusted rate ensures your business stays profitable and fairly compensated when responding to urgent needs.
If you’re unsure, a common emergency rate multiplier is 2 times your regular bill rate.
Premium Bill Rate
Premium Bill Rate = 1.5
Premium Bill Rate is the higher hourly rate you charge your client when a guard works overtime, holidays, or special shifts that go beyond normal working hours.
In the OfficerBilling rate calculator, you enter a multiplier.
Overtime pay directly increases your costs, and your billing needs to reflect that. Charging a premium bill rate ensures you’re not losing money when officers work extra hours.
If you’re not sure what to use, a 1.5x multiplier is the industry standard for overtime.
Profit Margin
Profit margin = 12
Profit Margin is the percentage of profit your company makes after paying for wages, insurance, equipment, vehicles, and other expenses.
For example, if it costs you $25/hour to provide a guard (including all expenses), and you want a 20% profit margin, you’d charge the client $30/hour. That $5 difference is your profit.
Accounting for it in a clear manner ensures your business is not just covering costs, but also earning enough to grow, reinvest, and stay financially healthy.
A 10–20% profit margin is common in the security industry.
Straight Bill Rate
Straight Bill Rate is the average hourly rate you charge your client for security services on a contract.
OfficerBilling include all your costs: wages, insurance, training, uniforms, vehicles, and overhead, plus your desired profit margin, into this rate. It tells you and your client how much they’ll pay per hour for the service and ensures your business covers its expenses while staying profitable.
The straight bill rate makes pricing simple, easy to present, and helps you evaluate if the contract is financially sound.
Direct Billed
Direct Billed refers to a passthrough cost—an expense your company pays up front but then bills the client for without adding any markup. These costs are not part of your profit but are simply reimbursed by the client.
This approach is useful for transparency and helps your client understand what they’re paying for. It also separates one-time or setup costs from your standard hourly or monthly rates, making your pricing clearer.
Using Direct Billed for specific items—like custom equipment, tracking software, or onboarding fees—can also make your proposal more competitive by showing the client you’re not profiting from necessary setup expenses, just covering them.