Free Calculator
Labor Cost Calculator
Calculate the true cost of an employee including wages, benefits, taxes, insurance, and overhead. Know your real labor costs before hiring.
Calculate True Employee Cost
Base hourly rate you pay the employee
Expected weekly hours
Health insurance, PTO, retirement match (15-35%)
FICA: 7.65% employer share is standard
Varies by trade (2-8% for field service)
True Cost / Hour
$37.98
Annual Cost
$79,002.56
Monthly Cost
$6,583.55
Cost Multiplier
1.36x
Key insight: Your $28/hr employee actually costs you $37.98/hr -- that is 1.36x their base wage. You need to bill this employee out at $94.96-$132.94/hr to maintain healthy margins.
Annual Cost Breakdown
How to Use This Calculator
Benefits percentage: Include health insurance premiums, paid time off (vacation + sick days), retirement contributions, and any other perks. For field service, 15-25% is typical for small businesses, 25-35% for companies offering full benefits.
Workers compensation: Rates vary significantly by state and trade. HVAC and electrical work typically run 3-6%, while plumbing is often 2-4%. Check with your insurance carrier for exact rates.
Cost multiplier: This tells you how much more an employee truly costs compared to their base wage. Most service businesses see a 1.3x-1.45x multiplier. Your billing rate should be 2.5-3.5x the true hourly cost.
Tips for Managing Labor Costs
- 1.
Track billable vs. non-billable hours religiously. Most techs are only billable 60-70% of their working hours -- the rest is drive time, admin, and breaks.
- 2.
Use GetTimePad's GPS tracking to minimize windshield time. Less driving = more billable hours per day.
- 3.
Cross-train technicians so they can handle multiple service types. A versatile tech fills more time slots.
- 4.
Implement performance bonuses tied to completed jobs, not just hours worked. It aligns incentives.
- 5.
Review overtime patterns monthly. Consistent OT means you need another hire -- OT costs 1.5x and burns out your team.
GetTimePad tracks all this automatically.
Real-time profitability tracking, automated invoicing, and business insights -- all built into your field service workflow.
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