Labor cost calculator

This calculator helps you see the real hourly cost of one employee, not just their base pay. It factors in paid time off, payroll taxes, benefits, and non-billable time so you can set accurate labor rates and pricing.

Employee Pay Inputs

Set working hours and pay rates. OT is optional.

Working hours per year

Base hourly rate ($)

OT hours

OT rate ($)

Non-working wages

These hours are paid, but not billable. they use the base hourly rate.

Holiday hours

PTO hours

Sick hours

Payroll taxes & benefits (annual)

Social Security (6.2%) and Medicare (1.45%) calculate automatically. Enter annual amounts for the rest.

Workers comp ($)

State unemployment ($)

Retirement ($)

Health insurance ($)

Billing assumptions

What percentage of working hours are truly billable time on a job?

Billable Efficiency (0-1)

Enter some details to see results

"*" indicates required fields

Results

Live calculations based on your inputs.

Billable hours

Working hours × efficiency

Break-even labor rate

Annual total cost ÷ billable hours

Hourly labor cost

Annual total cost ÷ 2,080

Overhead on wages

Total burden ÷ working wages

Working Wages 0

Non-Working Wages 0

Payroll Taxes 0

Benefits 0

Additional Cost Beyond Wages 0

Annual Total Cost 0

Want the full Excel tool for all employees?

The online preview is designed for one employee. If you want to build rates for every employee and keep the file on record, grab the full calculator with all equations included.