Rates, Fees & Charges (2024)

FAQs

What are rates and fees? ›

A rate is a percentage of a given sum. Example: The car salesman was paid at a rate of 10% of the sticker price for each automobile sold. A fee is a fixed sum, also agreed to by the parties involved.

Fees and Charges refer to levies imposed by national government agencies (NGAs) and government-owned or controlled corporations (GOCCs) on the direct recipients of public goods and services they render in the exercise of their mandated regulatory and service delivery functions.

Cost rates and charge rates are used to calculate the amount charged to the customer and the actual cost of work done on a project by an resource and recorded on a timesheet. A cost rate is the amount incurred by an individual when working for a period of time on an activity.

Rate is the price of a thing per piece, that can be multiplied to number of pieces to get price of the whole, it could be in terms of weight, length etc. whereas fee is a mandatory amount of money required to be paid for a certain service or an application for a certain job etc.

A fee can be looked at similar to a penalty. While there are no fees attached to your contract, you can be fined for late payments or a returned payment. A charge on the other hand, is an amount that you acknowledge you are purchasing. At origination, the amount you finance is considered a charge.

A loan's interest rate is the cost you pay to the lender for borrowing money. The Annual Percentage Rate (APR) is a measure of the interest rate plus the additional fees charged with the loan. Both are expressed as a percentage.

Most often, fees are the payment one makes for service, both basic—mowing a lawn, for example, and complex—like drafting a will or preparing your taxes. Sometimes there is more than one fee charged for a service (i.e., buying a plane ticket for X amount of money, but getting hit with luggage fees and travel fees).

Lawyers usually charge their clients for their services (fees) and expenses that they have paid on the client's behalf (disbursem*nts). Disbursem*nts may include court fees. Together these charges (lawyers' fees and disbursem*nts) are known as costs.

We use “fees” as a general term to speak of fees collectively, and we use “fee” to refer to one specific amount of money paid in one specific situation for services that we receive.

Cost is typically the expense incurred for making a product or service that is sold by a company. Price is the amount a customer is willing to pay for a product or service. Charge is where immovable property of one person is made security for the payment of money to another.

What is the difference between rate and cost? ›

Price is the amount at which a product is sold in the market. Cost refers to the total expenditure done by the producer of the good to produce such goods. Rate is also much like the price, and it means price per unit of the product.

When it comes to cost rates, these are pay rates, overhead, taxes, and other extra expenses. In other words, if we speak about an employee cost rate, we mean the total amount of money they receive after all taxes and expenses.

: a quantity, amount, or degree of something measured per unit of something else. b. : an amount of payment or charge based on another amount. specifically : the amount of premium per unit of insurance. rate transitive verb.

The word “fee” most often applies to a payment you make to access something. For example, you pay an entrance fee to enter an amusem*nt park. It's what you pay. The word “cost” is not what you pay; it describes what you pay.

Fee has an Old French origin in the word fieu, "possession, holding, domain, or payment," from the Medieval Latin feodum, "land whose use is granted in return for service." Definitions of fee. noun. a fixed charge for a privilege or for professional services.

An exchange rate is the rate at which one currency can be exchanged for another currency. Most exchange rates are defined as floating. Their values rise or fall based on supply and demand in the foreign exchange market. Some exchange rates are pegged or fixed to the value of a specific country's currency.

A capitalization, or cap, rate is the ratio of a property's net operating income (NOI) in the first year of ownership, divided by its purchase price. It's a fundamental concept used in the world of commercial real estate.

An origination fee is typically 0.5% to 1% of the loan amount and is charged by a lender as compensation for processing a loan application. Origination fees are sometimes negotiable, but reducing them or avoiding them usually means paying a higher interest rate over the life of the loan.