---
title: "Contractor Overhead Rate Per Labor Hour Calculator | MCC"
description: "Enter monthly overhead, billable hours, wages and burden to get overhead per labor hour, fully loaded labor cost and the price per hour for a target margin."
url: "https://mcc-solutionsnj.com/bookkeeping/contractor-overhead-rate-per-labor-hour-calculator"
---

Free tool

# Contractor overhead rate per labor hour calculator

## Overview

Find what an hour of labor really costs once overhead and payroll burden are added.

[![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)

Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software)

Shop or office rent per month ($)

Insurance per month ($)

Vehicles per month ($)

Software, phone and office per month ($)

Owner or admin pay not billed to jobs ($)

Other overhead per month ($)

Number of field workers

Billable hours per worker per month

Base wage per hour ($)

Payroll burden (% of wage)

Target margin on price (%)

Labor hours on a job (optional)

Excel workbook · $39

### Contractor Estimating and Job Costing Workbook

Price with a target margin, track costs as they happen and see which jobs make money.

[See what is inside ($39)](/toolkits/contractor-job-costing-workbook) [Free sample](/toolkits/contractor-job-costing-workbook#free-starter)14-day full refund

Share

## Put this tool on your own site

Free to use. Paste this where you want it to appear. It runs in the visitor's browser, so nothing they enter is sent to us.

[See every calculator you can embed](/embed)

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.

Want a second pair of eyes on your books? [A free bookkeeping health check](/bookkeeping/health-check).

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.

Related: [profit margin and markup calculator](/bookkeeping/profit-margin-and-markup-calculator), [contractor overhead rate per labor hour explained](/bookkeeping/guides/contractor-overhead-rate-per-labor-hour-explained), [contractor job costing workbook](/toolkits/contractor-job-costing-workbook). See [all free tools](/free-tools). More free tools: [Interest coverage ratio calculator](/bookkeeping/interest-coverage-ratio-calculator), [Customer churn rate calculator](/bookkeeping/customer-churn-rate-calculator), [ROAS and cost per acquisition](/bookkeeping/roas-and-cost-per-acquisition-calculator), or [see all free tools](/free-tools).

Free

### Month-End Close Checklist (PDF)

The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.

General information, not tax or legal advice. [How we write and check our tools](/editorial-standards).

Excel workbook

### Contractor Estimating and Job Costing Workbook

Price with a target margin, track costs as they happen and see which jobs make money.

[See what is inside ($39)](/toolkits/contractor-job-costing-workbook) [Try the free starter](/toolkits/contractor-job-costing-workbook#free-starter)

Also in the [Contractor Business Bundle](/toolkits/contractor-business-bundle): 4 products for $89 instead of $126 separately.

Tallyfinch

### Books you keep on your own computer

Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.

[See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software)

## Want your books and numbers handled?

[Free health check](/bookkeeping/health-check)[Call (908) 444-6373](tel:+19084446373)