Crew Payroll Cost Calculator
Enter your crew size, hourly rate, and labor burden percentage to see your true payroll cost — including the hidden costs most contractors miss.
How This Calculator Works
Enter your number of workers, average hourly rate, hours per week, and labor burden percentage. Hit calculate and the tool does the math.
You'll see your true weekly, monthly, and yearly payroll cost — including the per-worker cost and the real hourly rate you're paying once taxes, insurance, and other burden costs are factored in.
Stop underestimating what your crew actually costs. Use this number when pricing jobs so you're covering your full labor expense — not just base wages.
Enter Your Details
Total crew members on payroll
Average base wage across your crew
Taxes, insurance, workers' comp, benefits. Typically 25–40% for contractors.
Your results will appear here
Enter your crew details to see your total payroll cost including labor burden.
Why Your Payroll Costs More Than You Think
Most contractors only think about base wages when pricing jobs. But the true cost of an employee includes taxes, insurance, and benefits that add 25–40% on top.
See the True Cost
Your workers cost more than their hourly wage. This calculator factors in taxes, insurance, workers' comp, and other costs employers pay.
Plan Your Crew Size
See how adding or removing workers impacts your total payroll before you make hiring decisions.
Price Jobs Accurately
Use your true labor cost — not just base wages — when bidding jobs so you don't leave money on the table.
What's Included in Labor Burden?
Labor burden is the additional cost of employing a worker beyond their base wage. Here's what's typically included:
Payroll Taxes (7–10%)
Social Security (6.2%), Medicare (1.45%), Federal Unemployment (FUTA), and State Unemployment (SUTA) taxes that employers are required to pay.
Workers' Compensation (5–15%)
Required insurance that covers medical costs and lost wages for on-the-job injuries. Rates vary by trade — roofing and construction typically have higher rates.
General Liability Insurance (3–8%)
Protects your business against third-party claims for bodily injury or property damage that occur during operations.
Benefits & Other Costs (5–15%)
Health insurance, retirement contributions, paid time off, training, uniforms, and tools. These costs vary widely depending on what you offer your crew.
Typical total: 25–40% of base wages for most contractors. Use our calculator above with your actual burden rate to see the true cost of your crew.
Frequently Asked Questions
What is labor burden and why does it matter for payroll?
Labor burden is the total cost of employing a worker beyond their base wage, including payroll taxes, workers' comp, insurance, and benefits. For most contractors, labor burden adds 25-40% on top of base wages. If you don't factor it in when pricing jobs, you're losing money on every job you take.
How much does a $25/hour employee actually cost?
A $25/hour employee typically costs $31-$35/hour once you add employer-side Social Security (6.2%), Medicare (1.45%), FUTA, SUTA, workers' comp, and any benefits. At a 30% burden rate, that $25/hour worker costs you $32.50/hour -- or about $67,600/year instead of $52,000.
What payroll taxes do contractors pay on top of wages?
Employers pay Social Security (6.2% of wages up to the wage base), Medicare (1.45% of all wages), Federal Unemployment Tax (FUTA, 0.6% of the first $7,000), and State Unemployment Tax (SUTA, which varies by state and your claims history). These alone add roughly 8-10% to base wages.
How do I calculate payroll cost for piece rate workers?
For piece rate workers, calculate their effective hourly rate first by dividing total piece rate earnings by hours worked. Then apply the same burden percentage on top. The base wages may vary week to week, but the burden percentage stays the same. Piece Work Pro tracks this automatically for every pay period.
Should I include workers' comp in my payroll cost estimate?
Yes. Workers' comp is one of the biggest employer costs, especially in construction and roofing where rates can run 8-15% of payroll. Leaving it out of your labor cost calculation means you're underpricing every job by that amount.
How to Pay Your Crew 20% More and Double Your Profit
The math most contractors never run — and the mistakes that cost them $93K+ a year. This free PDF breaks down the math in ten minutes. Plus, you'll understand the payroll traps that can wipe you out.
Ready to Stop Wasting Time on Payroll?
Track piece work, run payroll in minutes, and know exactly what every job costs. Free to start — no credit card required.