True Labor Cost Calculator | ProjectWatchPro.com
Where did the money go? Most project-driven companies don't know they lost profit until 30–45 days after the job is done.

Where Did The Money Go?

Stop Losing Profit You Can't See.

Most project-driven companies don't know they lost money until 30–45 days later. Your wage rate is not your true labor cost — and the gap between the two is exactly where your profit disappears. Run your numbers below. No sign-up required.

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Simple
Advanced
Base Wage
$
/hr
Current Charge-Out Rate
$
/hr
Crew Size
1–5
6–10
11–20
21–50
50+
Labor Estimate Multiplier
How you currently estimate labor 1.50×
Billable Hours / Year
Per employee 1,700
Industry Benchmark Data
Data from Deltek Clarity, CFMA, Zweig Group, and AEC Advisors (2024–2026 benchmarks).
Full Loaded Multiplier on Base Wage
IndustryRangeSweet Spot
General Construction2.0× – 3.0×2.4× – 2.8×
Construction Mgmt2.2× – 3.1×2.5× – 2.8×
Engineering / AEC2.5× – 4.0×2.8× – 3.3×
Specialty Sub / Design-Build2.3× – 3.5×2.6× – 3.0×
Labor Burden Rate
Covers payroll taxes, workers' comp, health insurance, PTO, and retirement. Typical: 35%–45% of base wage. Our default: 40%.
Overhead Burden Rate (OBR)
Company-wide costs spread across productive hours. Typical: 80%–150% of base wage or ~90% of burdened labor. Our default: 90% of burdened labor.
Example: $32/hr Base Wage
Base Wage $32.00
+ Labor Burden (40%) +$12.80 = $44.80
+ Overhead (90% of $44.80) +$40.32 = $85.12
+ Task-Specific (5%) +$1.60 = $86.72
Multiplier 2.71×
Most contractors estimate labor at 1.3×–1.6× base wage. The gap between that and the true 2.4×–3.0× is where margin silently leaks on every project.
Hidden Cost
Multiplier
Regular
2.7×
Overtime
3.2×
Actual Profit Margin (at your current charge-out)
Regular
27.7%
Overtime
14.4%
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.
True Cost Breakdown
✕ What You Think It Costs $32.00/hr
✓ True Cost — Regular $86.72/hr
⏱ True Cost — Overtime $102.72/hr
Unlock Your True Cost Numbers
Potential Profit Leak
True cost per hour $86.72/hr
Your current estimate $48.00/hr
Gap per billable hour $38.72/hr
Leak per employee / year $65,824
⚠ Company-wide profit loss −$526,592
See Your Full Profit Leak
What You Should Be Charging
Regular Charge-Out Rate $123.89/hr
Overtime Charge-Out Rate $146.74/hr
Get Your Real Charge-Out Rates

No fluff. Just your numbers and what they mean.

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.

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.

Calculate Overhead Burden Rate
How to Calculate:
Divide your total monthly operating expenses by your total billable hours to get your hourly overhead rate.
1 Last Month's Operating Expenses
Include: Rent, utilities, insurance, admin salaries, equipment, software, etc.
$
2 Total Billable Hours Last Month
Only billable hours! Not all hours worked — only hours you can charge to clients.
hours
Your Overhead Burden Rate:
$0.00/hr
Example: $45,000 operating expenses ÷ 2,500 billable hours = $18/hr overhead rate
Calculate Labor Burden Rate
What is Labor Burden?
Labor burden includes payroll taxes, workers' comp, health insurance, benefits, paid time off, and breaks — all the costs on top of the employee's base wage.
Don't know your exact rate?
Labor burden typically ranges from 25% to 50% of base wage. If you're unsure, use 40% as a general estimate.
1 Based on Base Wage:
$32.00/hr
2 Labor Burden Percentage
20% (Low) 40% (Recommended) 60% (High)
Your Labor Burden Rate:
40% of $32.00 base wage
$12.80/hr
Calculate Task-Specific Cost
What is Task-Specific Cost?
Materials, consumables, or specialized equipment used for specific tasks. For example: sand for sandblasting, paint for painting, welding rods, etc.
1 Last Month's Material/Consumable Expenses
Total spent on materials for this specific task (e.g., sandblasting media, paint, welding supplies)
$
2 Hours Spent on This Task Last Month
Total hours your team spent doing this specific task
hours
Your Task-Specific Cost Rate:
$0.00/hr
Example (Sandblasting): $2,500 in sand/media ÷ 500 hours of sandblasting = $5/hr task cost
Calculate Overhead Burden Rate
How to Calculate:
Divide your total monthly operating expenses by your total billable hours to get your hourly overhead rate.
1 Last Month's Operating Expenses
Include: Rent, utilities, insurance, admin salaries, equipment, software, etc.
$
2 Total Billable Hours Last Month
Only billable hours — only hours you can charge to clients.
hours
Your Overhead Burden Rate:
$0.00/hr
Example: $45,000 operating expenses ÷ 2,500 billable hours = $18/hr overhead rate
Calculate Labor Burden Rate
What is Labor Burden?
Labor burden includes payroll taxes, workers' comp, health insurance, benefits, paid time off, and breaks — all the costs on top of base wage.
Don't know your exact rate?
Labor burden typically ranges from 25% to 50% of base wage. If you're unsure, use 40% as a general estimate.
1 Based on Base Wage:
$32.00/hr
2 Labor Burden Percentage
20% (Low) 40% (Recommended) 60% (High)
Your Labor Burden Rate:
40% of $32.00 base wage
$12.80/hr
Calculate Task-Specific Cost
What is Task-Specific Cost?
Materials, consumables, or specialized equipment for specific tasks. For example: sand for sandblasting, paint for painting, welding rods, etc.
1 Last Month's Material/Consumable Expenses
Total spent on materials for this specific task (e.g., sandblasting media, paint, welding supplies)
$
2 Hours Spent on This Task Last Month
Total hours your team spent doing this specific task
hours
Your Task-Specific Cost Rate:
$0.00/hr
Example (Sandblasting): $2,500 in sand/media ÷ 500 hours = $5/hr task cost