Labor Cost Calculator — Calculate Employee Labor Costs & Wages

Labor Cost Calculator

Calculate the total labor costs for your business including wages, benefits, taxes, and additional expenses. Plan your workforce budget effectively.

Step 1: Employee & Wage Details

$25.00
5

Understanding Labor Costs

Labor costs include not just wages but also benefits, taxes, insurance, and other employment-related expenses. These typically add 25-40% to base wage costs.

Step 2: Hours & Additional Costs

30%

Additional Cost Components

Benefits typically include health insurance, retirement contributions, payroll taxes (Social Security, Medicare), unemployment insurance, and workers’ compensation.

Labor Cost Results

Summary
Employee Comparison
Breakdown

Total Monthly Labor Cost

$6,500
Based on 5 employees at $25/hour with 30% benefits
Annual Labor Cost
$78,000
Cost per Employee
$15,600
Hourly Cost (incl. benefits)
$32.50
Weekly Cost
$1,625

Employee Type Cost Comparison

Employee Type Hourly Wage Monthly Cost Annual Cost

Monthly Cost Breakdown

Labor Cost Formula

Total Labor Cost = (Wage × Hours × Employees) × (1 + Benefits%) + Additional Costs

To calculate total labor cost: Multiply hourly wage by weekly hours and number of weeks (4.33 for monthly). Add benefits percentage, then include any additional monthly expenses.

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