Labor Cost Calculator
Calculate labor cost from hours, rate, and crew size. Include burden, overtime, and overhead to get a fully loaded crew cost.
Last updated 2026-08-21
What Is a Labor Cost Calculator?
The labor cost calculator estimates the cost of a crew from hours, hourly rate, and crew size. It helps you budget a job you are hiring out or price one you are doing yourself. Adding burden gives a fully loaded rate that includes benefits, insurance, and payroll taxes.
How It Works
Labor cost = Hours × Hourly rate × Crew size.
Example
8 hours × $50/hr × 3 crew = $1,200.
How to Calculate
- Estimate the hours the job takes, such as 8.
- Enter the hourly rate you pay each worker, such as $50 per hour.
- Enter the crew size, such as 3 people.
- Read the straight time labor cost, which is hours times rate times crew. That gives $1,200.
- Add a burden percentage to the rate if you want a fully loaded cost that includes benefits and taxes.
Common labor burden rates
| Cost component | Typical range | Notes |
|---|---|---|
| Payroll taxes | 8 to 10% of wages | Social Security and Medicare |
| Workers comp | 3 to 15% of wages | Higher for risky trades |
| Health benefits | 15 to 25% of wages | Depends on plan |
| Retirement match | 3 to 6% of wages | Common 401(k) match |
| Total burden | 20 to 40% of wages | Varies by trade and region |
Sources
Frequently Asked Questions
Should I include benefits?
Yes — a loaded rate (wage plus benefits, insurance, and taxes) gives a truer cost than the raw hourly wage.
Why multiply by crew size?
Each worker is paid hourly, so the total is hours × rate × number of workers.
Does this cover overtime?
No — this assumes straight time. Add a higher rate for OT hours if applicable.
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