Labour Cost Calculator
Calculate total crew labour cost including overtime and employment burden.
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What does your crew actually cost?
The wage you pay is only part of the story. Overtime and employment burden — payroll tax, insurance, workers' compensation, leave and super — push the real cost of an hour of labour well above the hourly wage. This calculator gives you the full picture, fast enough to use on site while quoting.
How to use it
- Enter your crew size and hourly wage.
- Add any overtime hours and the multiplier you pay for them.
- Set your employment burden percentage — everything on top of wages that employing someone costs you.
The formula
Worked example
2 workers at $32/hr for 8 hours each, no overtime, 25% burden. Base labour cost is $512, burden is $128, for a total labour cost of $640 — a real cost of $40 per productive hour, not $32.
Frequently Asked Questions
What counts as employment burden?
Typically payroll taxes, workers' compensation insurance, superannuation/pension contributions, paid leave, training and any tools or equipment supplied to the employee. Percentages vary a lot by country and business — enter your own rather than relying on a default.
Why does labour cost more per hour than the wage?
Because employing someone costs more than just their wage. Burden costs typically add 20–40% on top, depending on where you operate and what benefits you provide.
How is this different to the hourly rate calculator?
The hourly rate calculator works out what you should charge a customer. This calculator works out what your crew actually costs you to employ for a job — a key input into pricing.