Our labor cost estimator calculates true fully-burdened labor costs using industry-standard burden rates and overhead allocations. The calculator provides transparent pricing breakdowns that help contractors justify rates to customers while ensuring all costs are covered and healthy profit margins are maintained.

Understanding Labor Burden Components

Labor burden represents all costs beyond base wages. These additional costs are often 30-50% of base wages and must be included in pricing to ensure business sustainability. Understanding and communicating these costs helps customers appreciate the value of properly insured, licensed, and professional contractors.

• Benefits: Health insurance, retirement, paid time off (20-30% of base)
• Payroll taxes: FICA, unemployment, workers' compensation (8-12% of base)
• Overhead: Facilities, tools, vehicles, administration (10-20% of direct labor)
• Productivity factor: Accounts for non-billable time (75-90% typical)
• Profit margin: Necessary for business sustainability (10-20% typical)
• True cost is typically 1.5-2x base wage when all factors included

Sources & References