Labor Cost Calculator

What a crew really costs on a job, and what to charge to keep labor at your target percentage

Updated 2026-10-01

Workers on the job

Hours each

hrs

Average hourly wage

Payroll burden (taxes, comp, benefits)

Job price

Target labor cost

Loaded labor cost: $660.00
Labor cost % of price: 33.0%
Crew-hours: 24
Direct wages: $528.00
Loaded rate per crew-hour: $27.50
Price for target labor %: $2,200.00

Loaded labor = workers × hours × wage × (1 + burden %). Labor % = loaded labor ÷ job price. Price for a target = loaded labor ÷ target %.

Your numbers stay on this device. The page link keeps your inputs, so a bookmark or shared link reopens these results.

Enter how many people work the job, the hours each works, their hourly wage and your payroll burden. The calculator gives the direct and loaded labor cost, the labor cost percentage of the job price, and the price you would need to charge to hit a target labor percentage. Nothing is stored or sent.

The labor cost formula

Direct labor = workers × hours × hourly wage. Loaded labor = direct labor × (1 + burden %). Labor cost % = loaded labor ÷ job price × 100.

The burden is everything you pay on top of the wage because someone works for you: the employer share of Social Security and Medicare, unemployment taxes, workers' compensation insurance and any benefits. Leaving it out is the most common reason a job that looked profitable is not. The employee cost calculator works your own burden out line by line.

Worked example: a three-person day

Three workers spend 8 hours each on a job at $22 an hour: 24 crew-hours and $528 of direct wages. With a 25% burden the loaded labor cost is $660, a loaded rate of $27.50 per crew-hour. On a $2,000 job, labor is 33% of the price.

If your target is 30% labor, the same crew time needs a $2,200 price: $660 ÷ 0.30. Either raise the price or plan the job tighter.

Three workers × 8 hours at $22 with a 25% burden
Line	Amount
Crew-hours	24
Direct labor	$528.00
Loaded labor (+25%)	$660.00
Loaded rate per crew-hour	$27.50
Labor cost % on a $2,000 job	33.0%
Price for 30% labor	$2,200.00

Using labor % to quote

Track the labor percentage on finished jobs, not only on estimates. If the actual crew-hours keep running over the quote, raise your production estimate rather than your hope. The figure that suits you depends on the trade: service work with few materials runs a much higher labor share than a job that is mostly materials, so compare jobs of the same kind.

Include drive time and loading time in the hours if you pay for them.
Count overtime hours at the overtime rate; the overtime calculator gives it.
For a sole trader with no employees, use your own target hourly rate as the wage and 0% burden.

Keep the numbers in a spreadsheet

Ready-made Excel and Google Sheets templates that pick up where this calculator stops. One-off purchase, instant download.

Employee Schedule & Timesheet Template
Weekly shift schedule with hours and labor cost, printable timesheets with overtime, hours log and payroll summary.
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Quote / Estimate Template Spreadsheet
Professional quote with validity date, tax, deposit and acceptance signature.
$7See template

Frequently asked questions

How do you calculate labor cost for a job?

Multiply workers × hours × hourly wage, then add your payroll burden. Three people for 8 hours at $22 is $528 in wages, or $660 with a 25% burden.

What is labor cost percentage?

Loaded labor cost divided by the price of the job or by sales for the period, times 100. $660 of labor on a $2,000 job is 33%.

What is a labor burden?

The employer costs on top of wages: payroll taxes, unemployment insurance, workers' compensation and benefits. It is usually expressed as a percentage of wages.

How do I price a job for a target labor percentage?

Divide the loaded labor cost by the target as a decimal. $660 of labor at a 30% target needs a $2,200 price.

Is labor cost the same as employee cost?

No. Employee cost is the full annual cost of one hire. Labor cost here is the cost of the crew time on a single job, which is what you need for a quote.

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