Pricing

Labour Cost Calculator

Calculate the true labour cost of a job and estimate what you may need to charge after applying a labour markup.

Currency

Number of workers

Hours per worker

Enter the estimated number of hours each worker will spend completing the job.

Hourly labour cost

Use the true hourly cost to your business rather than only the worker's hourly wage.

Additional labour costs

Include overtime, paid travel time, specialist labour, or other labour-related expenses for this job.

Labour markup (%)

Add a percentage above your labour cost to contribute towards overhead and profit.

Estimated Results

Recommended labour charge

1.747 €

Total labour hours

Total labour cost

1.344 €

Labour markup amount

403 €

Effective charge per hour

36 €

What this means

Labour hours

Labour cost

1.344 €

Labour charge

1.747 €

The job requires approximately 48 labour hours. At an hourly labour cost of 28 €, plus the additional labour costs entered above, the estimated labour cost is 1.344 €.

Applying a 30% markup adds 403 €, producing a recommended labour charge of 1.747 €.

This works out at approximately 36 € charged per labour hour and a resulting margin on the labour charge of 23.1%.

The markup adds a meaningful amount above the labour cost. Check the full job price alongside materials, overhead, and other expenses before finalising your quote.

This calculator provides a simplified pricing estimate. Your final labour charge may also need to account for business overhead, risk, delays, tax, market pricing, warranties, and other costs.

Understanding Your Result

How labour cost is calculated

Formula

Total labour hours

Number of workers × hours per worker

Total labour cost

Total labour hours × hourly labour cost + additional labour costs

Recommended labour charge

Total labour cost + labour markup

Explanation

Labour pricing should start with the real cost of providing the labour rather than simply multiplying an employee's wage by the number of hours on site.

Paid travel, employer costs, overtime, specialist workers, and other labour expenses can make the true cost considerably higher than the basic wage.

Adding a markup allows the labour element of the job to contribute towards business overhead and profit rather than merely recovering the direct labour cost.

FAQ Section

Labour Cost Calculator FAQs

How do I calculate labour cost for a job?+

Multiply the total labour hours required by your true hourly labour cost, then add any extra labour-related costs such as overtime, travel time, or specialist labour.

What should I use as the hourly labour cost?+

Use the true hourly cost to your business rather than only the employee's wage. This can include employer payroll costs, benefits, and other employment expenses where relevant.

What is labour markup?+

Labour markup is the percentage added on top of your actual labour cost when calculating what to charge the customer. It helps cover overhead and generate profit.

Should travel time be included in labour cost?+

If workers are being paid while travelling to or from a job, or while collecting materials, that time can form part of the real labour cost of completing the work.

Is labour markup the same as profit margin?+

No. Markup is calculated as a percentage of your cost, while profit margin is calculated as a percentage of the final selling price. A 30% markup does not produce a 30% profit margin.