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

  1. Estimate the hours the job takes, such as 8.
  2. Enter the hourly rate you pay each worker, such as $50 per hour.
  3. Enter the crew size, such as 3 people.
  4. Read the straight time labor cost, which is hours times rate times crew. That gives $1,200.
  5. Add a burden percentage to the rate if you want a fully loaded cost that includes benefits and taxes.

Common labor burden rates

Cost componentTypical rangeNotes
Payroll taxes8 to 10% of wagesSocial Security and Medicare
Workers comp3 to 15% of wagesHigher for risky trades
Health benefits15 to 25% of wagesDepends on plan
Retirement match3 to 6% of wagesCommon 401(k) match
Total burden20 to 40% of wagesVaries 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.

Mason ReidFounder and Lead Estimator at MeasureThen

Mason Reid founded MeasureThen after two decades of hands-on work in construction and estimating. Across residential and light commercial projects, he sized concrete pours, framed walls, hung drywall, and priced out roofing, fencing, and deck work — learning the exact math that every job depends on. At MeasureThen he writes the formulas, checks every calculator against real-world assumptions, and makes sure each one is simple enough for a homeowner to trust and a contractor to use. When he is not measuring twice, he is helping projects stay on budget.

Every MeasureThen calculator uses simple, transparent formulas and standard industry assumptions drawn from common construction practice. We show the math behind each result and include worked examples so you can follow along and double-check the numbers. Results are estimates: materials, labor, and pricing vary by region and market, so always confirm important figures with a licensed professional and your local building codes.