Labor Cost Calculator
Calculate Fully-Loaded Labor Costs
Enter base wages, benefit and overhead rates, and shift details to see the true cost of labor per hour, per shift, per part, and per year.
Wage & Burden Rates
$/hr
%
%
Schedule
hrs
days
parts
Fully-Loaded Hourly Rate
$37.50
50% burden on$25.00 base
Cost per Shift
$300.00
Cost per Part
$3.00
Annual Cost
$75,000
Burden Rate Breakdown
Base Wage$25.00/hr
Benefits (30%)$7.50/hr
Overhead (20%)$5.00/hr
Daily Cost
$300.00
1 shift
Annual Hours
2,000
250 days/yr
What Goes Into a Fully-Loaded Labor Rate
A base hourly wage only tells part of the story. The fully-loaded rate includes every cost the employer actually pays per hour of work.
Benefits Burden
- •Health insurance: Medical, dental, and vision premiums
- •Payroll taxes: FICA, FUTA, state unemployment
- •Retirement: 401(k) match or pension contributions
- •Paid time off: Vacation, sick days, holidays
Overhead Burden
- •Facility costs: Rent, utilities, maintenance allocated per worker
- •Equipment: Depreciation and tooling assigned to labor
- •Supervision: Management and support staff costs
- •Training: Onboarding, safety, and skills programs
Typical Burden Rates by Industry
Burden rates vary widely depending on location, company size, and benefit packages. These ranges cover most manufacturing environments.
| Category | Low End | Typical | High End |
|---|---|---|---|
| Benefits (% of base) | 20% | 30-35% | 45%+ |
| Overhead (% of base) | 10% | 15-25% | 40%+ |
| Total Burden | 30% | 45-60% | 85%+ |
| Loaded Multiplier | 1.3x | 1.45-1.60x | 1.85x+ |
How to Reduce Labor Cost per Part
Labor cost per part is the metric that ties workforce spending directly to production output. Reducing it does not always mean cutting wages.
Increase Throughput
- 1.Reduce setup and changeover time with SMED techniques
- 2.Eliminate non-value-added motion through cell layout
- 3.Cross-train operators to reduce idle time between tasks
- 4.Automate repetitive handling and inspection steps
Optimize Burden
- 1.Audit benefits annually to match actual workforce needs
- 2.Spread fixed overhead across more shifts when demand supports it
- 3.Reduce scrap and rework to avoid paying labor twice for the same part
- 4.Track labor efficiency ratio to find variance from standard