Free Labor Cost Calculator
Estimate the true cost of your hourly workforce, including the payroll burden most people forget.
How to use this tool
Enter headcount and wage
Add your number of employees and average hourly wage.
Add hours and weeks
Enter hours per week and weeks worked per year.
Set the burden rate
Burden covers employer taxes, benefits, and insurance (often 18–25%).
Add overtime
Optionally include total weekly overtime hours.
Read the true cost
See base wages, overtime, burden, and total annual labor cost.
Want this automated?
Let MyCo do it for you
MyCo handles scheduling, time tracking, payroll, and HR for US businesses with 50–500 employees — no spreadsheets, no manual math.
Book Your Free Demo →Frequently Asked Questions
What is labor burden?
Labor burden is the cost of an employee beyond wages — employer payroll taxes (FICA, FUTA, SUI), benefits, workers' comp, and insurance. It typically adds 18–25% on top of wages.
What burden rate should I use?
A common starting estimate is 20–22% for hourly workers, higher if you offer rich benefits. Adjust to your actual costs.
How is overtime costed?
Overtime is calculated at 1.5x the base wage for the overtime hours you enter, per FLSA.
Is this calculator free?
Yes, free and no signup required.