BuildCalcPRO
ServicesBlogAboutContact
Online
Request a Tool
BuildCalcPRO

Free construction calculators for contractors, builders, estimators, and homeowners. Every tool runs in your browser — no account, no subscription, your numbers never leave your device.

31 tools · Free forever

Platform

  • All tools
  • Categories
  • Services
  • Blog
  • Request a custom tool
  • Contact

Resources

  • How it works
  • Estimating guides
  • Master Proposal Builder
  • Bid cart

Company

  • About
  • Services
  • Contact

Legal

  • Privacy
  • Terms of use
  • Disclaimer
  • Concrete, Masonry & Earthwork
  • Framing, Carpentry & Roofing
  • Drywall, Tile & Finishes
  • Site Work, Decks & Fencing
  • MEP Quick-Check Estimators
  • Bidding, Markup & Financials
  • Field Converters & Master Proposal

© 2026 BuildCalc Pro. Free construction tools for everyone.

Estimates are planning aids verify quantities against your local codes and supplier quotes.

  1. Home
  2. Tools
  3. Bidding, Markup & Financials
  4. True Burdened Labor Rate
NewLabor< 3 minFree to use

Labor Burden Rate Calculator for Contractors

Enter the base wage, statutory tax rates, workers' comp per $100 of payroll, and how you carry general liability. Add paid holidays, vacation/sick days, and annual benefits. Set billable efficiency (80% is typical), then size the crew and hours for the bid line. Press Add to Master Estimate to dispatch the burdened labor allocation.

$
$/hr
%
%
$/100
% payroll

Paid time off & benefits

days/yr
days/yr
$
$/yr
%

Bid allocation (for the estimate line)

workers
hrs
Base wages$58,240.00
Payroll taxes (FICA + unemp.)$6,493.76
Workers' comp$4,950.40
General liability$1,456.00
PTO + benefits$8,384.00

True burdened cost

$51.77

/HR

Bill of materials+0% waste

MaterialNetWasteOrder

True cost per billable hour

+84.91% burden

Net $28.00/hr base · Waste —

$28.00/hr base—$51.77/hr

Base wages

per year

Net — · Waste —

——$58,240.00

Payroll taxes (FICA + unemp.)

per year

Net — · Waste —

——$6,493.76

Workers' comp

per year

Net — · Waste —

——$4,950.40

General liability

per year

Net — · Waste —

——$1,456.00

PTO + benefits

per year

Net — · Waste —

——$8,384.00

Billable hours / year

2,080 hrs − PTO − unbillable time

Net 80% efficiency · Waste —

80% efficiency—1,536 hrs

Cost projection

Labor 1440 crew-hrs × $51.77$74,548.80
Total$74,548.80

Saved on this device · No account · No cloud

+84.91% over base wage

$51.77 /hr burdened

About this tool

Payroll taxes, workers' comp, liability, PTO, and benefits stack on top of every base wage a $28/hr wage typically costs $38–$42/hr to employ.

How to use

Enter the base wage, statutory tax rates, workers' comp per $100 of payroll, and how you carry general liability. Add paid holidays, vacation/sick days, and annual benefits. Set billable efficiency (80% is typical), then size the crew and hours for the bid line. Press Add to Master Estimate to dispatch the burdened labor allocation.

How the math works

Billable efficiency (default 80%) shrinks the 2,080-hour year by travel, shop time, weather, and holidays before the rate is computed.

The burden % multiplier shows exactly how much to mark up raw wages so labor pays for itself on every bid.

Formula

Burdened $/hr = total annual cost ÷ billable hrs

Common questions

▸What is labor burden rate?

The true employer cost of one billable hour: base wage plus payroll taxes, workers' comp, PTO, and benefits, divided by actual billable hours. It is the rate your bids must carry for labor to pay for itself.

▸Why is the burdened rate so much higher than the wage?

FICA and unemployment taxes add roughly 11%, workers' comp for carpentry and roofing runs $8-$15 per $100 of payroll, PTO is paid non-production time, and only about 80% of the 2,080-hour year is billable. A +35-50% burden is normal.

▸What billable efficiency should I use?

80% is the industry rule of thumb - it accounts for travel between jobs, material runs, tool maintenance, safety meetings, and weather delays. Far-flung service areas may run 70-75%.

▸How do you calculate labor burden for a bid?

Add annual wage, taxes, comp, PTO, and benefits to get total annual cost, then divide by billable hours (2,080 x efficiency). The tool outputs the burdened $/hr and a burden % multiplier to apply to raw wages.

▸Does this replace my accountant's payroll numbers?

No - this is a bidding tool, not a tax filing. State unemployment rates, comp class codes, and benefit costs vary, so tune the inputs with your actual year-end payroll figures and confirm tax treatment with your bookkeeper.

Keep estimating

Related tools

More bidding calculators for this job.

Markup vs. Margin CalculatorMarkup vs margin calculator that converts between markup and margin, prices jobs from direct cost, and shows true net profit after overhead. Free, no sign-up.Use toolSubcontractor Piece-Work & Crew ProductionSubcontractor piece rate calculator that computes total payout, effective hourly yield per worker, and production pace for piece-rate crews. Free, no sign-up.Use toolDaily Overhead & Breakeven RateDaily overhead calculator that finds your minimum daily cost to keep the doors open and the minimum bid rate that actually leaves profit. Free, no sign-up.Use toolBreak-Even CalculatorBreak-even calculator for contractors that shows the monthly revenue and number of jobs needed each month before the business turns a profit. Free, no sign-up.Use tool
Back to Bidding, Markup & FinancialsExplore all tools