Glossary

Net rate

A net rate is the effective per-word or per-hour cost applied to a translation project after discounts for translation memory (TM) matches, repetitions or other automation-based efficiencies have been taken into account. It reflects the true cost to the client once linguistic leverage is applied.

Description

In translation and localization workflows, pricing is often based on the volume of new or unique content to be translated. When a translation memory identifies segments already translated in previous projects or within the same file, these segments can be reused or partially edited.

This reuse generates TM leverage (translation memory leverage) – allowing the provider to charge reduced rates for exact or fuzzy matches. The net rate is the weighted average of all these adjusted costs, showing the client’s actual payable rate for the total work completed. Net rates vary by language pair, content type and project scope. They offer transparency in pricing, rewarding clients for maintaining consistent terminology and structured content. At RWS, net rate calculations are managed through Trados and integrated TMS platforms, combining linguistic data with automated analysis to ensure efficiency, accuracy and cost predictability across localization programs.