Labor Calculator

Calculate employee labor costs, overtime, payroll burden, effective hourly cost, billable labor, and profitability.

Currency

Choose the currency you want to use.

Work & pay

Enter the employee's hourly rate and hours worked.

$
hours
hours
×
Example: 1.5× means 150% of the regular rate.
Total labor cost

$0.00

regular pay plus overtime pay
Regular pay
$0.00
Overtime pay
$0.00
Total hours
0 hours
Effective hourly cost
$0.00
Overtime rate
$0.00
Overtime premium
$0.00

Calculation breakdown

Regular hourly rate
Regular hours
Regular pay
Overtime hours
Overtime multiplier
Overtime rate
Overtime pay
Total labor cost
Basic calculation: Regular pay is hourly rate × regular hours. Overtime pay is hourly rate × overtime multiplier × overtime hours. Actual overtime rules and required premiums depend on your employment agreement and local laws.

Currency

Choose the currency you want to use.

Compensation

Define the employee's regular and overtime compensation.

Regular & overtime hours

Enter paid hours and the overtime premium used for your calculation.

$
hours
hours
×
hours
Deducted from the total scheduled time.
$

Employer labor burden

Add costs the employer pays beyond direct wages.

Payroll & statutory costs

These are percentage-based costs applied to direct wages and bonuses.

%
%
%
Health, retirement, paid leave, etc.
%

Additional employer costs

Include fixed costs associated with this employee or role.

$
Equipment, allowances, software, etc.

Productivity & billing

Optional fields for businesses that bill clients for labor.

hours
Hours actually billed to clients.
$
Revenue charged to the client per billable hour.
$
Additional business overhead assigned to this labor period.
$
Professional labor costing: The advanced calculator separates direct wages from employer burden and business overhead. This helps estimate the employer's actual cost rather than relying only on the employee's advertised hourly wage.
Total employer labor cost

$0.00

wages + burden + additional employer costs
Direct wages
$0.00
Employer burden
$0.00
Effective hourly cost
$0.00
Labor burden rate
0%
Billable revenue
$0.00
Labor profit
$0.00
Labor profit margin
0%
Billable utilization
0%
Billing rate
$0.00
Revenue per worked hour
$0.00

Wage breakdown

Regular pay
Overtime pay
Bonuses / commissions
Direct wages
Total paid hours
Effective wage rate

Employer cost breakdown

Payroll taxes
Workers' compensation / insurance
Benefits
Other payroll burden
Additional employer costs
Total employer burden
Total employer labor cost

Billing & profitability

Billable hours
Client billing rate
Billable revenue
Overhead allocation
Other project expenses
Total project cost
Labor profit

Key metrics

Total scheduled hours
Total paid hours
Billable utilization
Labor burden rate
Effective employer cost / hour
Important: Labor burden rates vary significantly by employer, location, employment arrangement, benefits package, insurance costs, and applicable regulations. Use your actual payroll and employer costs for budgeting. This calculator is intended for estimation and planning, not payroll or legal compliance.