Free tool · Labor cost
What does an employee really cost you?
The hourly wage is only part of it. Add payroll taxes, workers' comp, benefits, paid time off, and the hours nobody bills, and see the true cost of every hour you sell.
Why it matters
Price from the true cost, not the wage.
When you price labor from the wage alone, every hour you sell quietly loses money. Your labor rate needs to cover the true cost per billable hour, then your overhead, then your profit.
Next step
Is your markup covering it?
Once you know your true labor cost, check that your markup gives you the margin you think it does.
Try the Markup vs. Margin calculator →