MarginWorksLoaded Labor Cost
Calculate your fully loaded labor rate: base wage plus payroll taxes, workers comp, and benefits, so every bid is priced against your real labor cost, not just the wage you write on the paycheck.
How we got here
- Loaded rate = base wage × (1 + burden) = $25 × 1.30 = $32.5
- Burden added = loaded rate - base wage = $32.5 - $25 = $7.5
Loaded rate at other burden levels
| Burden scenario | Loaded rate |
|---|---|
| Low (20%) | $30 |
| Below average (25%) | $31.25 |
| Typical (30%) | $32.5 |
| Above average (35%) | $33.75 |
| High (45%) | $36.25 |
Next Decision
Based on your results, these related decisions are available.
- Crew Cost & Required Billable RateTurn your per-worker loaded rate into a per-crew rate and see what you need to charge.
- Job Profit CheckCheck whether a specific bid actually clears a profit once you know your real labor cost.
- Service Call & Trip Charge PricingPrice what it costs just to show up, using your real loaded labor rate.
- Change Order Price CalculatorPrice added scope mid-job using your real loaded labor rate.
- Hire vs. Overtime / Second Crew Break-EvenDecide how to cover a demand spike using your real loaded labor rate.
- HVAC Maintenance Agreement Pricing & Renewal ProfitabilityPrice your maintenance agreements using your real loaded labor rate.
- HVAC Seasonal Capacity PlanningSize your peak-season staffing gap using your real loaded labor rate.
- HVAC Billable Technician Rate & Dispatch RadiusSet your billable technician rate using your real loaded labor rate.
Methodology
Formula: loaded rate = base wage × (1 + labor burden). Labor burden covers payroll taxes (FICA, unemployment), workers compensation insurance, and any benefits paid on top of wages, expressed as a percentage of the base wage.
Assumption: the 20% to 45% "likely range" reflects typical contractor labor burden nationally. Your actual burden depends on your state's workers comp rates, whether you offer health insurance or retirement matching, and your payroll tax situation, enter your own number rather than relying on the range if you know it.
Limitation: this is a per-hour labor cost only. It does not include overhead recovery, profit margin, or non-labor job costs, see Overhead Allocation & Break-Even Revenue and Markup vs. Margin for the rest of the pricing chain.