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Labor Rate Calculator

Labor rate calculator for contractors

Calculate what you should charge for your labor per man-hour by entering your labor costs, hours, and overhead expenses.

  • Enter the price you charge per manhour now.
  • Enter your projected field labor costs for the year.
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    Enter your projected field labor costs for the upcoming year. (this number needs to INCLUDE LABOR BURDEN ie. payroll taxes, workers comp, vacation pay, benefits, bonuses, etc) Keep in mind this is only for employees that work on billable jobs that generate revenue. It would not include a role such as office admin, as that would get entered in Overhead

  • Enter the total hours you project your field employees will work during the year.
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    Enter the total hours you project your field employees will work this year. Easiest way to estimate this is look at last year, adjust for any +/- new employees, etc and estimate what the total will be this year. Do NOT enter hours for overhead employees such as office admin, shop mechanic, etc

  • Now, how many of those hours you entered above were UNBILLABLE?
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    Now, how many of those hours you entered above were UNBILLABLE? Meaning they were on tasks around the shop, loading/unloading, training/meetings, callbacks on projects, etc. If you do not have any of this recorded, take your best educated guess. A common average we see is about 5% of your hours for your Field Labor employees that you entered above are UNBILLABLE.

  • Enter projection of all overhead costs for the year.
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    Enter projection of all overhead costs for upcoming year. This includes anything to "keep the lights on" plus insurances, equipment that doesn't get billed out for on a per hr/day basis, property rent/payments, trucks, any labor that does not get directly billed for on jobs (Office admin, salesperson, owner wages), etc (NOTE: Do NOT include the cost for the unbillable hours for your Field Labor employees, we already calculated that)

  • Enter your net profit goal

Want an expert looking over your shoulder?

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Something just does not quite feel right?

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We have a team of industry veterans who live and breathe company numbers, man-hour rates, markups, overhead recovery, and more, day in and day out. 

Grab a time on our calendar to dig into your numbers.

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