AIThis post was created with the assistance of artificial intelligence (AI).
Thorsten Meyer AI’s November 6, 2026 analysis estimates that a U.S. software developer would need to bill about $98 per hour at full utilization, or about $197 per hour at 50% utilization, to break even under its stated assumptions. The model draws on the Bureau of Labor Statistics’ May 2025 median developer wage of $135,980 and SHRM’s 2025 recruiting-cost data; the estimates are calculations, not published market rates.
At a glance
The developmentA November 6, 2026 analysis by Thorsten Meyer AI estimates that a software developer’s break-even billing rate is about $98 per hour at full utilization and about $197 at 50% utilization, using U.S. wage and recruiting-cost data.
Source: Thorsten Meyer AI
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IT Hiring · Briefing
Augmentation vs. full-time hiring The break-even rate
Thorsten Meyer AI’s November 2026 analysis estimates the hourly billing rate needed for staff augmentation to break even with full-time hiring.
$98/hour
Break-even at full utilization
$197/hour
Break-even at 50% utilization
Utilization changes the rate
Lower billable utilization means a higher hourly rate is needed to break even.
Full utilization
- About $98 per hour
- All available time is billed
50% utilization
- About $197 per hour
- Half of available time is billed
What the estimate uses
Wages
Developer pay
The model uses the U.S. median developer wage of $135,980 from May 2025.
Recruiting
Hiring costs
The estimate also draws on SHRM’s 2025 recruiting-cost data.
Interpret with careThese are calculations under stated assumptions, not published market rates.
The takeaway
Compare the billable rate with utilization: the estimated break-even rate rises from about $98 to $197 per hour when utilization falls to 50%.
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