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Labor Rate Calculator

Calculate what to charge per hour to cover wages, benefits, overhead, and profit. GC-specific burden items and benchmarks.

What you pay the worker (before taxes/benefits)

Payroll taxes, workers comp, benefits (35-45% typical)

Rent, insurance, trucks, office staff allocated per hour

Typical: 1,800-2,000 hrs/year per field worker

Results

Fully Loaded Cost
--
per hour
Billable Rate
--
per hour
Profit per Hour
--
Annual Margin
--

Rate Breakdown

Burden rates vary by state (workers comp rates differ significantly). Verify your actual burden costs with your accountant or payroll provider.

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Save this calculation to your account

Create a free account to save your results, track your numbers over time, and download a branded PDF you can share with your accountant.

Email these results to yourself

Get a copy you can reference on the job site or attach to a quote.

How to Use This Calculator

1. Enter the base hourly wage. This is what you pay the worker before any taxes, insurance, or benefits.

2. Set the burden rate. This covers FICA (7.65%), unemployment taxes (3-6%), workers comp (5-15% for construction), and benefits. For construction, 35-45% is typical.

3. Add your overhead per hour. Divide your total annual overhead by your total annual billable hours. If you do not know this, the overhead calculator on this site can help.

4. Set your desired profit margin. This determines the final billable rate you charge customers. Most GCs target 20-30% margin on labor.

How the Formula Works

Burden_Cost = Hourly_Wage x (Burden_Rate / 100)

Fully_Loaded = Hourly_Wage + Burden_Cost + Overhead_per_Hour

Billable_Rate = Fully_Loaded / (1 - Desired_Margin / 100)

Profit_per_Hour = Billable_Rate - Fully_Loaded

Frequently Asked Questions

How do I calculate a billable labor rate for construction?
Start with the hourly wage, add burden costs (35-45%), add overhead per hour, then divide by (1 - desired margin). This gives you a billable rate that covers all costs and delivers your target profit.
What is a labor burden rate?
Labor burden is the additional cost beyond the base wage: FICA taxes, unemployment taxes, workers comp insurance, health insurance, and other benefits. For construction workers, burden typically adds 35-45% on top of the base wage.
What is the average construction labor rate?
General laborers earn $18-28/hr, skilled carpenters $25-45/hr, and foremen $30-55/hr. Billable rates charged to customers range from $50-125/hr depending on trade and market.

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