Job labor cost calculator

Estimate the labor cost of a job from crew size, hours, rates, overtime and travel time.

Job labor cost calculatorWorkers on the crew: 3Average hourly wage ($): 24Regular hours per worker: 16Overtime hours per…: 2👷
In shortJob labor cost = (regular hours × rate + overtime hours × rate × overtime multiplier + paid travel hours × rate) × number of workers × (1 + burden %).

Enter your figures

Taxes, insurance and benefits as % of wages

Enter your numbers and press Calculate.

How the job labor cost is calculated

Wages per worker = regular hours × rate + overtime hours × rate × multiplier + travel hours × rate.

Crew wages = wages per worker × workers.

Total cost = crew wages × (1 + burden ÷ 100).

A worked example

A three-person painting crew earns $24 an hour, works 16 regular hours and 2 overtime hours each, plus 1.5 paid travel hours. Wages per worker are $384 + $72 + $36 = $492; the crew costs $1,476 in wages and $1,771.20 with a 20% burden.

Who uses this calculator

Use it to quote a job, or after a job to compare estimated and actual hours. Real hours from a time clock make the comparison much more useful than estimates.

Enter your own burden percentage for taxes and benefits. If you do not know it, use the labor burden calculator first.

A different scenario

Two electricians earning an average of $34 an hour wire a small retail fit-out in 30 regular hours each, plus 3 paid hours each driving to the site and the supply house. Set the overtime multiplier to none and the burden to 28%. Wages are $1,122 per worker and $2,244 for the pair, and labor with burden is $2,872.32. Over 66 paid hours that is $43.52 an hour, before materials and overhead.

Making sense of the job labor cost number

The average per hour line is labor cost only, so compare it with your billing rate after adding overhead. Every worker gets the same rate and hours, so a crew with an apprentice and a foreman needs a weighted average wage. Overtime appears only if you enter it, and it reflects the crew’s total week, not just this job.

Frequent job labor cost mistakes

The job labor cost by team type

Painting and drywallAdd drying time gaps as travel or standby hours if the crew must wait on site.
Event staffingUse show hours plus load-in and load-out, since those are often longer than the event itself.
Worth knowingTag each time punch with a job code. After ten jobs you will have real hours per job type to quote from.

What people ask about the job labor cost calculator

Is travel time paid?

Travel between job sites during the workday is generally work time. Commuting usually is not. Rules vary, so check.

Where do hours come from?

For estimates, past jobs. For actuals, time records per job.

Should overhead be added?

Yes, for pricing. Use the overhead rate calculator.

What about materials?

Add them separately.

How do I estimate overtime before the job starts?

Look at where the job falls in the crew’s week. If the crew will already have 32 hours from other work, everything beyond 8 hours on this job is overtime, so enter those hours as overtime rather than regular.

What labor burden percentage should I enter?

Use your own payroll taxes, workers’ comp for the trade’s class code and benefits, divided by wages. Trades with higher workers’ comp rates, such as roofing, carry a noticeably higher burden than shop or office work.

Related resources

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General information and an estimate only. It is not legal, payroll, tax or financial advice. Rules vary by state and city. Check important results with a qualified professional.