Construction Costs

Labor Cost Calculator

Find the total and hourly labor cost with total labor burden for any construction project

This Construction Labor Cost Calculator is designed to help you accurately project the actual labor cost of an individual worker in a project by accounting for wage, hours worked and labor burden.

What is Labor Burden?

Your labor burden is the additional costs that you pay beyond a standard wage of a worker on payroll. This includes both state and federal taxes, medicare, and insurance premiums. Additional costs may include retirement plan support, vacation, bonuses, allowances, membership dues, or any other expenses you pay for each employee.

How to calculate construction labor costs?

Calculating your real cost of labor is an important step in providing accurate estimates. The additional costs of labor beyond an hourly wage can quickly wipe out your profit margin from any job if they're not properly accounted for upfront.

To find your construction labor cost, you need to know three things:

  1. Hourly wage
  2. Hourly labor burden
  3. Hours worked/needed

The formula for calculating the construction labor cost is:

(Hourly Wage + Hourly Labor Burden) * Hours Worked/Needed

For example, if you have a worker that is paid $25 per hour with a labor burden of $7 per hour and they will be needed for 40 hours during your project, the labor cost for this worker is $1,280 ( ($25+$7)*40 ).