Project Labor Cost Calculator
Example: Number of workers: 3 workers · Hours per day: 8 hrs · Number of days: 5 days · Base hourly rate: 35 $ · Labor burden: 30 %
| Loaded labor cost | $5,460 |
| Base labor cost | $4,200 |
| Total labor hours | 120 |
Worked example
A crew of 3 working 8 hours a day for 5 days puts in 3 x 8 x 5 = 120 labor hours. At $35 an hour the base labor is 120 x 35 = $4,200. Apply a 30% burden for payroll taxes, workers-comp insurance, and overhead, and the loaded cost is 4,200 x 1.30 = $5,460. That $1,260 gap is the part a wage-only estimate quietly leaves out.
Frequently asked questions
What is labor burden?
Labor burden is everything an employer pays on top of the base wage: Social Security and Medicare taxes, unemployment insurance, workers-compensation premiums, and often a share of general overhead and benefits. It commonly adds 20 to 40% or more to the raw wage, which is why estimating on wage alone underprices a job.
Should I use base or loaded rate for pricing a bid?
Bid on the loaded rate. If you quote a client using only the base wage, the burden comes straight out of your margin. The loaded cost this tool produces is the floor your price must cover before any profit, so build your bid up from that number.
How do I estimate the hours?
Break the job into tasks and apply production rates, such as square feet installed per hour or units set per day, from your own history or published labor guides. Multiply by crew size and days. When unsure, run an optimistic and a pessimistic day count to bracket the cost.
Does overtime change this?
Yes. Hours beyond the standard week are often paid at time-and-a-half, so a schedule that relies on long days or weekend work costs more per hour than the base rate. For a rough estimate, raise the base rate to reflect the expected overtime mix before applying burden.