Construction Labor Cost Calculator
Estimate the true labor cost for your construction projects. Don't underbid your jobs.
Labor Cost Estimator
Why labor estimates fail
The #1 reason contractors lose money is underestimating labor. You calculate 40 hours based on perfect conditions, but forget to account for site prep, cleanup, material runs, and mistakes.
What is "Labor Burden"?
Paying a worker $25/hour implies the cost to you is just $25. But after payroll taxes, insurance, workers comp, and benefits, that worker might actually cost you $35 or $40 per hour.
Always add a markup (or "burden rate") to your raw hourly calculations. A safe starting point is often 20-30% depending on your state and insurance costs.
How to use this calculator
Enter the number of workers, their hourly rate, estimated hours per day, and total project days. Then adjust the burden rate to reflect your payroll taxes and insurance overhead. The calculator instantly shows your true labor cost so you can bid accurately and protect your margins.
Common labor cost mistakes
- Forgetting overtime premiums on jobs that run long
- Ignoring travel time between job sites
- Not accounting for seasonal slow-downs or weather delays
- Using last year's insurance rates instead of current ones
Want to skip the manual calculations?
VoiceInvoice does the math for you. Just speak your invoice items.