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Labor Cost
Calculator

By the BidOrca Team•Updated March 2026

Your hourly rate is not your labor cost. Factor in burden, insurance, taxes, and overhead to know what labor really costs per hour.

Enter Your Labor Details

Base Hourly Wage ($)

Workers Comp (%)

Payroll Tax (%)

Health Insurance ($/mo)

PTO Days / Year

Overhead (%)

Vehicles, tools, office, admin, etc.

Your True Labor Cost

Loaded Hourly Cost$36.79/hr

Annual Cost per Employee$73,578

Billable Hours / Year2,000

SUGGESTED BILLING RATE (2.5x - 3x)

Bill at$91.97 - $110.37/hr

COST BREAKDOWN

Base Wages: $52,000 (71%)

Payroll Tax: $3,978 (5%)

Workers Comp: $2,600 (4%)

Health Insurance: $7,200 (10%)

Overhead: $7,800 (11%)

Set your labor rate in BidOrca for accurate estimates every time.

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Typical Burden Rates by Trade

TradeTypical Burden %

General Construction30-40%

Electrical35-45%

Plumbing30-40%

Roofing40-55%

Painting25-35%

Landscaping25-35%

Labor Cost Tips

Always use burdened rates when estimating, not base wages

Workers comp varies dramatically by trade -- verify yours

Subs simplify labor costs but check their insurance

Factor in non-billable time: travel, setup, cleanup

Overtime at 1.5x applies to burden too, not just wages

Review your burden rate annually as insurance costs change

Related Resources

→ How to Estimate Materials → Contractor Markup Guide → Free Markup Calculator → Free Profit Margin Calculator → AI Estimate Generator → How to Write a Contractor Estimate

Use BidOrca for Automatic Calculations

BidOrca lets you set your burdened labor rate once and applies it to every estimate automatically. No more guessing on labor costs.

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More Resources

By Trade: Electrical|Plumbing|HVAC|General|Handyman

Tools: AI Estimates|Free Invoicing|Construction App

Compare: vs Jobber|vs Joist

Learn: FAQs|Guides|Why So Expensive?|Estimate Checklist

Labor CostCalculator