Free Tool
Loaded Labor Rate Calculator
Your crew's hourly wage is only part of the cost. Add payroll taxes, workers' comp, benefits, and more to see what each hour really costs you.
Burden / Overhead Items
Enter each item as a percentage of the base wage. Leave blank or 0 for items that don't apply.
Fully Loaded Rate
$0.00
per hour
Total Burden
0%
Burden per Hour
$0.00
Cost Breakdown
Estimated Annual Cost (2,080 hrs)
$0
Based on full-time (40 hrs/week × 52 weeks)
What Is a Loaded Labor Rate?
A loaded labor rate (also called a "burdened rate" or "fully loaded rate") is the true cost of employing someone for one hour of work. It includes the base wage plus all employer-paid costs: payroll taxes, workers' compensation insurance, health benefits, paid time off, and other overhead.
For most construction workers, the loaded rate is 25% to 45% higher than the base hourly wage. A carpenter earning $35/hour might actually cost you $45-50/hour when all burden is included.
Why Loaded Rates Matter for Estimating
If you estimate labor using base wages, you're underpricing every job by 25-45%. Over a year, that gap adds up to tens or hundreds of thousands of dollars in unrecovered costs.
The loaded rate is what you should use in estimates and job cost tracking. It represents the real cost of putting a worker on a job site for an hour.
Breakdown of Common Burden Items
| Item | Typical % | Notes |
|---|---|---|
| FICA | 7.65% | Social Security (6.2%) + Medicare (1.45%). Employer matches employee contribution. |
| FUTA | 0.6% | Federal unemployment tax. Applied to first $7,000 of wages per employee per year. |
| SUTA | 1% – 6% | State unemployment tax. Varies widely by state and your claims history. |
| Workers' Comp | 5% – 20% | Varies by trade and state. Roofing and steel work are highest; office workers are lowest. |
| Health Insurance | 8% – 15% | Employer contribution to medical, dental, vision. Varies by plan and region. |
| PTO / Paid Leave | 3% – 8% | Vacation, sick days, holidays. Each paid day off costs ~0.4% of annual wages. |
| Other | 1% – 5% | Training, tools, uniforms, safety equipment, 401(k) match, etc. |
How to Use Your Loaded Rate
- In estimates: Multiply loaded rate × estimated hours for each labor line item. This ensures your bids cover the true cost of labor.
- In job costing: Track labor costs using the loaded rate, not the base wage. This gives you an accurate picture of actual costs vs. budget.
- For billing rates: Your billing rate should be higher than the loaded rate — the difference covers overhead and profit. Many contractors use a multiplier of 1.5x to 2.0x the loaded rate.
Automate your labor cost tracking
ConstructiveCore tracks crew hours by job and cost code, calculates loaded rates, and rolls it all into your job cost reports automatically.