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GENERAL CONTRACTOR

Labor Burden Calculator

The hourly wage you pay is not the hourly cost you need to charge. Payroll taxes, workers comp, benefits and small extras add a burden percentage that changes your real labor rate and your bids.

JOB INPUTS

Enter your numbers

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Gross wage before employer costs

$/h
Gross wage before employer costs

Workers compensation %

%
Workers compensation %

FICA, unemployment and state taxes

%
FICA, unemployment and state taxes

Health, retirement and paid leave

%
Health, retirement and paid leave

Training, gear and admin

%
Training, gear and admin

Hours worked per year

h
Hours worked per year
Results update automatically
CALCULATED RESULTUSD
Fully burdened hourly rate$35.56
Total burden27.0%
Annual base wages$58,240.00
Annual burden cost$15,724.80
Total annual cost$73,964.80
FORMULA USED$28.00 × (1 + 27.0%) = $35.56 / hr

HOW TO USE IT

How to use the Labor Burden Calculator

  1. 1

    List every employer cost: Start with workers compensation, payroll taxes, health and retirement benefits, and training or equipment costs. Each is a percentage of the base wage.

  2. 2

    Sum the burden percentage: Adding 5% workers comp + 8% payroll + 10% benefits + 4% other gives a 27% burden. Apply it to the base wage to get the loaded rate.

  3. 3

    Compute the loaded rate: At $28/hr, a 27% burden makes the real cost $35.56/hr. That is the number to use in estimates, not the base wage.

  4. 4

    Extend it to annual cost: At 2,080 hours a year the fully loaded annual cost is roughly $73,965. Use the Labor Burden Calculator and keep the burden percentage current every quarter.

THE MATH

Labor burden calculation method

Add workers comp, payroll taxes, benefits and other costs as a percentage of base wage. A $28/hr wage with 27% total burden becomes a $35.56/hr fully burdened rate.

Adding 5% workers comp + 8% payroll + 10% benefits + 4% other gives a 27% burden. Apply it to the base wage to get the loaded rate.

PRACTICAL EXAMPLE

Worked example for Labor burden

Add workers comp, payroll taxes, benefits and other costs as a percentage of base wage. A $28/hr wage with 27% total burden becomes a $35.56/hr fully burdened rate.

FAQ

Frequently asked questions

How do you calculate labor burden?

Add workers comp, payroll taxes, benefits and other costs as a percentage of base wage. A $28/hr wage with 27% total burden becomes a $35.56/hr fully burdened rate.

What should I verify before using the result?

A bid priced on base wages quietly loses money. Always bid the fully burdened rate.

Is this a final quote or design?

No. Use it as a planning estimate, then confirm measurements, local rates, product requirements, permits and jobsite conditions before bidding or building.