True Labor Cost Calculator | ProjectWatchPro.com
Most contractors find out their profit is gone after the job is done. Stop finding out 45 days too late.
⚠ Your Wage Is Not Your Labor Cost

Your Wage Is Not
Your Labor Cost.
Here's What It Actually Is.

You pay him $32/hr. You bill him out at $95. You think you're winning. You're not. Once you add burden, overhead, and downtime — that employee costs $86.72/hr. The gap is where your profit disappears.

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Watch this before you price your next job.

If You've Ever Said Any of These — This Was Built For You

You're Not the Only One.

"I keep winning jobs but I'm not making money."
"I bid it right but by the end the profit's gone."
"I don't know where the money went."
"Busy and broke."
"Made more last year on half the volume."
"Labor is killing me but I don't know exactly how."

You're not the problem. The way labor cost gets calculated is.

The Wage Lie — Exposed

You Think It's $32/hr. Your Business Is Paying $86.72.

Two modes. Simple if you want the fast answer. Advanced if you want the full breakdown. Both show you what your estimating model has been missing.

Simple Mode Advanced Mode
Layer 1: Base Wage
The hourly rate you pay the employee
$32/hr
Always Applied
Your Current Charge-Out Rate
What you currently bill clients per hour for this employee
$ 120 /hr
Crew Size
How many field employees do you have?
1–5
6–10
11–20
21–50
50+
Labor Estimate Multiplier 1.50×
1.25×Default: 1.50×2.25×
Billable Hours / Year 1,700
1,400Default: 1,7001,900
How True Cost Is Calculated
Base Wage$32.00/hr
+ Labor Burden (40% of wage)$12.80/hr
= Burdened Labor Cost$44.80/hr
+ Overhead Burden (90% of burdened)$40.32/hr
+ Task-Specific (5% of wage)$1.60/hr
True Cost (Regular) $86.72/hr
Defaults based on 2024–2026 industry benchmarks. Switch to Advanced Mode for your exact numbers.
⚙ Industry Benchmark Data
Target Profit Margin
%
Regular Charge-Out:
$123.89/hr
Overtime Charge-Out:
$146.74/hr
Hidden Cost Multiplier
2.7×
3.2×
✕ They Think
$32.00
/hr
✓ True Cost
$86.72
/hr regular
⏱ Overtime
$102.72
/hr OT
Potential Margin Leak
How we calculated this:
True cost:$86.72/hr
Your estimate (1.50× wage):$48.00/hr
Gap:$38.72/hr
× 1,700 hrs/year:$65,824
Per Employee / Year
$65,824
Company-Wide Impact
$526,592
A 8-person crew could leak this in margin annually.
"Most contractors estimate labor between 1.3–1.6× hourly wage, depending on overhead structure."
Actual Profit Margin
Regular
27.7%
$33.28/hr
Overtime
14.4%
$17.28/hr
Stop Underbidding Jobs
Stop Finding Out Too Late
Price the Next Job Right
Know What One Hour Really Costs You
"You're not the problem. The way labor cost gets calculated is. Most project-based companies are running on cost assumptions that haven't been stress-tested in years. This changes that."
— Real-Time Data. Real-Time Decisions. Real-Time Profits. — ProjectWatchPro.com

Stop Finding Out
45 Days Too Late.