--- title: "How the Fixed Fee for a Dedicated Dev Team Is Calculated" description: "How the fixed monthly fee for a dedicated offshore software team is calculated as a yearly average, why it never changes, and how leave and busy weeks work." url: "https://azendo.co/blog/pricing-and-capacity/how-fixed-monthly-capacity-works/" --- 1. [Home](https://azendo.co/) 2. [Newsroom](https://azendo.co/newsroom/) 3. [Pricing and capacity](https://azendo.co/blog/pricing-and-capacity/) 4. How the fixed fee for a dedicated dev team is calculated # How we calculate a fixed monthly fee that stays the same every month. A committed monthly capacity is one fixed fee for an agreed number of hours, the same every month. For one full-time person it comes to around 160 hours a month, once Thai public holidays and leave are averaged across the year. Leave and busy weeks don't change the invoice, and the team can grow as your product does. By [Mikkel Schmidt](https://azendo.co/about/mikkel-schmidt/) Published 18 September 2026 · Updated 11 November 2026 Working hours across a full year, divided by twelve, and the same fee every month. ## The arithmetic Take a specialist’s contracted working hours across a full calendar year. Subtract Thai public holidays, their annual leave and an allowance for personal leave. Divide what remains by twelve. That figure is the [committed monthly capacity](https://azendo.co/pricing/) in your agreement, and the price attached to it. For a typical full-time developer it comes to around 160 hours a month. A team’s capacity is the sum of its members, and your proposal states the exact figure for each person and the total. Scroll the table sideways to see every column. __Committed monthly capacity by team size, full-time specialists__ | Team | Hours a month | Invoices a month | | -------- | ------------- | ---------------- | | 1 person | Around 160 | 1 | | 3 people | Around 480 | 1 | | 5 people | Around 800 | 1 | ## Why some months run over and some run under A month with no public holidays delivers more than the committed average. April, with Songkran, delivers less. December and January land somewhere in between, depending on how leave falls. Over twelve months it evens out, because the commitment is a yearly average. Scroll the table sideways to see every column. __An illustration for one full-time specialist, at eight hours a day__ | Month | Working days | Hours delivered | Invoice | | ------------------------------- | ------------ | --------------- | -------------------- | | A month with no public holidays | 22 | 176 | The monthly fee | | April, with Songkran | 18 | 144 | The same monthly fee | | The yearly average | 20 | 160 | The same monthly fee | Your invoice is the same in every one of those months, and so is your forecast. Finance teams plan engineering cost a year ahead without a correction every quarter. ## What counts as capacity Capacity is time the team spends on your product: building, testing, reviewing, planning with your team and joining your ceremonies. It’s tracked in our system and reported to you every month, so you can see delivered hours against the commitment. Delivery management, training, coaching, the office, equipment and HR sit around that capacity. They’re part of the same monthly fee, and none of them appears as a separate line on the invoice. ## How leave and absences are handled Planned leave is already in the arithmetic, so it doesn’t change the fee. Leave is known in advance, and sprints are planned around it, so it never comes as a surprise. Longer absences are a conversation with one named person. Your service delivery manager tells you as early as possible, so you can re-plan the affected sprints. If a team member leaves for good, we recruit and onboard the replacement under the same agreement. ## What a fixed fee gives you Because you pay for a committed monthly capacity, the fee doesn’t change when one month has fewer working days than the next. With a [dedicated development team for hire](https://azendo.co/hire-a-dedicated-development-team-in-thailand/) you don’t audit a timesheet the way you would with an hourly contractor. A short month doesn’t start a discussion either. It also changes what you talk about. With hourly billing, every hour is a cost to keep down. With a committed capacity, you talk about how to use the team’s time best. ## Raising or lowering the commitment You get a capacity report every month. When the work needs more, you can add hours or a new skill under the same agreement. A [dedicated development team](https://azendo.co/services/dedicated-software-development-team/) usually starts small and grows this way, one role at a time. It’s also how companies hire dedicated developers through us. ## How this compares with hourly billing With plain staff augmentation or [offshore staffing](https://azendo.co/blog/engagement-models/offshore-staffing/) you’d usually pay by the hour, track the hours yourself and see a different invoice every month. A fixed monthly capacity is part of what makes the service managed. You get one figure, the same every month, for the people and everything we do around them. Send us a message Tell us what you want to build. We come back with the team we would assign and what it costs. ## Questions people ask. What happens if we use less than the committed capacity? The fee stays the same, because you're paying for a dedicated team's capacity, and the people on it aren't working for anyone else in the meantime. If your backlog runs thin, your service delivery manager raises it early, so you can bring work forward and keep the team on what matters next. Is there an hourly rate behind this? There's a rate for each role and seniority level, which is how we build the quote. Once the agreement is signed, you pay the monthly figure for the committed capacity, and you don't have to check hours against an invoice. Hours are still tracked and reported every month. What about extra hours in a heavy release week? Busy weeks are planned within the monthly average where possible, balanced by quieter weeks. If a period regularly needs more than the commitment, we agree a higher capacity with you under the same agreement. You never get an unexpected invoice for overtime. Are public holidays and annual leave included? Yes. Thai public holidays, annual leave and an allowance for personal leave are deducted before the yearly hours are divided by twelve. They're already inside the monthly figure. A month with Songkran delivers fewer hours than a month without, and the invoice is the same in both. ## Tell us what you want to build and we will tell you what it takes. A service delivery manager replies with the roles we would assign, the monthly capacity and what the first month looks like. [Get in touch](https://azendo.co/get-in-touch/) [How it works](https://azendo.co/how-it-works/) ## Get a monthly capacity figure for your team.