Labor burden
What it costs to employ the crew beyond wages: payroll taxes, insurance and benefits. Skip it for rows already entered at a loaded rate.
Free tool · Construction calculators
Construction Labor Calculator
Estimate construction labor costs by trade, crew size, hours, and hourly rate. Add labor burden, overhead, and markup to see your estimated labor cost and labor selling price — free, with no signup required.
- USD · hourly rates by trade
- Results update as you type
- Free to use · no sign-up
How it's calculated
base = workers × hours × rate
loaded = base × (1 + burden)
cost = loaded × (1 + overhead)
price = cost × (1 + markup)Burden applies to base-wage rows only; add already-loaded rows directly to loaded labor. Overtime premiums aren't included — add them as a separate allowance.
Illustrative example inputs · not Washington wage rates. An estimate of labor only, not a complete project bid.
01 / How to use it
Five steps. One labor number you can defend.
Work through the calculator top to bottom. Every figure in the estimate traces back to a field you filled in.
- 01
Add your trades
One row per trade or task — framing, drywall, general labor.
- 02
Enter crew and hours
Workers on the row and regular hours for each worker.
- 03
Set the wage basis
Base wage, or a fully loaded rate that already includes burden.
- 04
Add indirect costs
Your labor burden, overhead and markup percentages.
- 05
Review the estimate
Check loaded cost, billed rate and selling price line by line.
02 / Formula & worked example
From crew hours to selling price.
Three workers for one 40-hour week at a $35 base wage. Each line builds on the one above it.
| Step | Amount · USD |
|---|---|
| Base wages3 workers × 40 hrs × $35/hr | $4,200.00 |
| Labor burden · 25%$4,200.00 × 0.25 | + $1,050.00 |
| Loaded laborbase + burden | $5,250.00 |
| Overhead · 10% of loaded labor$5,250.00 × 0.10 | + $525.00 |
| Cost including overheadloaded + overhead | $5,775.00 |
| Markup · 15% of cost$5,775.00 × 0.15 | + $866.25 |
| Estimated labor selling pricecost + markup | $6,641.25 |
Markup is not margin: a 15% markup on cost is a 13.0% margin on the selling price.
03 / Washington projects
Estimating labor in Washington.
There's no single Washington labor rate to plug in. Use the rates you actually pay or have quoted for the trade, the job location and the type of project — then let the calculator handle the arithmetic.
- Base wage
- The hourly pay the worker receives before employer costs.
- Labor burden
- Employer costs on top of wages — payroll taxes, workers' comp premiums, benefits and similar costs that apply to your crew.
- Rate you bill
- What the customer pays per hour once overhead and markup are added to loaded labor.
04 / Burden, overhead & markup
Three percentages. Count each cost once.
Most labor estimates go wrong when the same cost hides in two places — inside a loaded rate and again in burden or overhead.
Overhead
Company costs that keep the job running but aren't tied to one worker — supervision, office, vehicles, small tools.
Markup
What you add on top of cost. A 15% markup is not a 15% margin; margin is measured against the selling price.
05 / FAQ
Labor cost questions, answered.
How do you calculate construction labor cost?
Multiply workers × regular hours per worker × hourly rate for each trade, then add labor burden to base wages. That gives loaded labor cost. Add overhead and markup to reach the price you charge.
How much should I charge for construction labor?
Start from your loaded labor cost, add your overhead, then apply the markup your business needs. The right number depends on your trade, crew, location and market — there's no single correct rate.
What is included in a loaded labor rate?
The base wage plus the employer costs of that worker: payroll taxes, workers' compensation premiums, insurance and benefits. If you enter a loaded rate, don't add burden again.
What is the difference between markup and profit margin?
Markup is a percentage of cost; margin is a percentage of the selling price. A 15% markup on $5,775 adds $866.25, which is a 13.0% margin on $6,641.25.
What affects construction labor rates in Washington?
The trade, the job's location, crew experience, union or open-shop status, and whether the job is public works, where prevailing wage rules from Washington L&I apply.
Does this calculator include overtime or prevailing wages?
No. It uses the regular hours and rates you enter. Add overtime premiums as a separate allowance, and look up prevailing wage rates with Washington L&I.
Is this construction labor calculator free?
Yes. It's free to use, with no sign-up or email required.
From estimate to budget
Turn this estimate into a budget line.
In Buildend, labor sits in the project budget against its cost code — so you can see how the hours you priced compare with what the job actually costs.
See how Buildend tracks labor against budget →| Line item | Hours | Rate | Budget |
|---|---|---|---|
| 06-10-00 · Carpentry labor | 80 | $55.34 | $4,427.50 |
| 01-50-00 · General labor | 40 | $55.34 | $2,213.75 |
| Labor total | 120 | $6,641.25 |
Illustrative example · not a customer account
Disclaimer
The calculators, assessments, and checklists on this page are provided by Buildend for general informational and planning purposes only. They are not a substitute for professional advice from a licensed engineer, accountant, attorney, or other qualified professional, and they should not be relied upon as the sole basis for any financial, structural, contractual, or safety-related decision.
Results are estimates based on the values you enter and standard industry formulas or assumptions. They do not account for site-specific conditions, local building codes, contract terms, material specifications, or other factors that may materially affect actual outcomes. Buildend makes no warranty, express or implied, as to the accuracy, completeness, or applicability of any result produced by these tools.
You are solely responsible for verifying all calculations, rates, and figures with appropriate professionals — including your payroll provider, accountant, and legal counsel — before relying on them for bidding, payroll, or contractual purposes.
To the fullest extent permitted by law, Buildend disclaims all liability for any loss, damage, or claim arising from the use of, or reliance on, these tools.