Labor Rate Calculator

Instructions: Enter labor costs, hours, burden, and fudge factor, then Calculate.

Tips

Type your numbers, they will format automatically, example $45,678.
Press Enter, you will jump to the next field.
On the last field, press Enter, you will jump to Calculate, then press Enter again, or click, to see results.
Reset clears everything, and returns outputs to —.
Inflation is optional. If blank, forward rates equal the current all-in hourly rate.

Base labor Costs + hours for the same period

Total Labor Costs (COGS)

Base wages only (excluding burden).

Total Labor Hours (COGS)

Total hours tied to the costs above.

Add-ons Burden + contingency

Labor Burden % ? Labor burden represents the true cost beyond wages (payroll taxes, benefits, insurance, retirement, PTO, etc.).

Applied on top of labor costs.

Fudge Factor % ? Contingency for real-world conditions (downtime, rework, errors, learning curves, interruptions, schedule gaps, client changes, etc.).

Applied on burdened labor costs.

Forward Optional

Annual Labor Inflation Rate ? Used to project forward hourly rates (6 months, 1 year, 18 months, 2 years). If blank, we assume 0%.

If left blank, forward rates will equal the current all-in hourly rate.

Total Burdened Rate + Fudge

—

Total cost: —

Business impact —

—

Hourly Rates	Value
Labor Rate (COGS)	—
Labor Burden (COGS)	—
Burdened Rate (COGS)	—
Fudge Factor	—
Total Burdened Rate + Fudge Factor	—

Forward Hourly Rates	Value
Current Rate	—
Rate in 6 Months	—
Rate in 1 Year	—
Rate in 18 Months	—
Rate in 2 Years	—

Period Totals	Value
Labor Burden $	—
Total Burdened Labor Costs (COGS)	—
Fudge Factor $	—
Total Burdened Labor Cost (COGS) + Fudge Factor	—

© Coltivar Group LLC. Do not copy, redistribute, or share without prior written permission.

Disclaimer: This model is provided for informational purposes only. Use at your own risk. Coltivar makes no guarantees regarding the accuracy of formulas or outputs and is not responsible for any decisions, outcomes, or losses resulting from the use of this tool.

What Is Your Real Hourly Labor Cost, Fully Loaded?

If you’ve ever wondered “What does one hour of labor really cost my business?” or “Am I underpricing labor without realizing it?”, this calculator is built for you.

The Labor Rate Calculator helps you determine your true all-in hourly labor rate by layering labor burden and contingency on top of base wages. Just enter your labor costs, hours, burden percentage, and optional fudge factor to see the real hourly rate your business is carrying, today and forward.

This tool is ideal for business owners, operators, and financial leaders who want clarity instead of rough estimates when pricing labor, quoting jobs, or planning margins.

Move From Guesswork to Fully Loaded Labor Economics

Many businesses price labor using base wages alone, or add burden inconsistently across projects. The result? Hidden costs, squeezed margins, and pricing decisions that look profitable on paper but fail in reality.

This calculator breaks labor down step by step:

Base wages
Labor burden
Contingency (fudge factor)
A single, clear all-in hourly rate

With optional labor inflation, you can also project forward hourly rates and understand how today’s decisions affect future costs.

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