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Contractor overhead rate per labor hour calculator
Find what an hour of labor really costs once overhead and payroll burden are added.
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How it works
How it works
Overhead per labor hour is monthly overhead divided by the billable labor hours your crew works in a month. Burdened wage is the base wage times one plus your burden percentage (payroll taxes, insurance, benefits). Add the two for the fully loaded cost per hour. Dividing that cost by one minus your target margin gives the price per hour, and the calculator also shows the equivalent markup on cost.
FAQ
About this calculator
What is overhead?
Costs of running the business that are not tied to one job, such as rent, insurance, vehicles and admin.
Why are billable hours lower than paid hours?
Time spent driving, ordering, estimating and cleaning up is paid but not billed. Use the hours you can actually bill.
Markup or margin?
Margin is a percent of the price and markup is a percent of cost. A 30 percent margin is about a 43 percent markup.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
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