Labor Cost Calculator 2026
Construction Labor Estimator & Burdened Rate Calculator
Based on BLS 2026 wage data
Calculate Basic Labor Cost
Calculate Fully Burdened Labor Rate
Construction Project Labor Estimate
2026 Construction Trade Labor Rates
Select a trade to see typical hourly rates and calculate costs.
Hourly Range: $45 - $95/hr
Avg Burdened: $75/hr
Union rates may be 20-40% higher
💰 Labor Cost Estimate
What is Labor Cost?
💰 Labor Cost Definition
Labor cost is the total expense an employer incurs for employee work, including wages, payroll taxes, benefits, and related overhead. In construction, labor typically represents 30-50% of total project costs.
Burdened labor rate (fully loaded rate) includes all costs beyond base wages: payroll taxes, workers' compensation, health insurance, retirement contributions, tools, training, and administrative overhead.
Labor Cost Formulas
Basic Labor Cost
Burdened (Fully Loaded) Labor Rate
Project Labor Estimate
- Determine Base Wage: Start with the hourly rate you pay the worker.
- Add Payroll Taxes: FICA (7.65%) + FUTA/SUTA (varies by state, typically 2-6%).
- Add Workers' Comp: Varies by trade (2-15%+); higher for dangerous work.
- Add Benefits & Overhead: Health insurance, retirement, tools, admin, profit margin.
- Calculate Burdened Rate: This is your true cost per hour or billable rate.
2026 Construction Labor Rate Benchmarks
| Trade | Base Wage Range | Burdened Rate | Contractor Billing |
|---|---|---|---|
| Electrician | $28 - $55/hr | $45 - $85/hr | $65 - $150/hr |
| Plumber | $26 - $50/hr | $42 - $80/hr | $60 - $140/hr |
| HVAC Technician | $25 - $50/hr | $40 - $80/hr | $75 - $150/hr |
| Carpenter | $22 - $45/hr | $35 - $70/hr | $50 - $100/hr |
| Roofer | $18 - $35/hr | $30 - $55/hr | $45 - $90/hr |
| Painter | $18 - $35/hr | $28 - $55/hr | $40 - $85/hr |
| Mason | $22 - $45/hr | $35 - $70/hr | $55 - $110/hr |
| Welder | $22 - $50/hr | $35 - $80/hr | $60 - $125/hr |
| General Laborer | $15 - $25/hr | $22 - $40/hr | $30 - $60/hr |
Rates vary significantly by region, union status, project complexity, and market conditions. Major metros typically 20-50% higher.
Labor Burden Components
| Component | Typical Rate | Description |
|---|---|---|
| FICA (Social Security & Medicare) | 7.65% | Employer's matching portion |
| FUTA (Federal Unemployment) | 0.6% | First $7,000 of wages |
| SUTA (State Unemployment) | 1-6% | Varies by state and experience rating |
| Workers' Compensation | 2-15%+ | Higher for dangerous trades |
| Health Insurance | $5-15/hr | Employer portion of premiums |
| Retirement/401k Match | 3-6% | Employer contribution |
| Paid Time Off | 5-10% | Vacation, sick, holidays |
| Training & Safety | 1-3% | OSHA, certifications, equipment |
| Administrative Overhead | 10-20% | Office, accounting, management |
Official Resources
Frequently Asked Questions
Basic: Labor Cost = Hourly Rate × Hours Worked × Number of Workers. For true cost, use the burdened rate which adds 25-50%+ for taxes, benefits, and overhead: Burdened Rate = Base Wage × (1 + Burden %).
The burdened (fully loaded) rate includes all employer costs: base wage + payroll taxes (FICA, FUTA, SUTA) + workers' comp + benefits + overhead. If base wage is $30/hr, burdened rate might be $45-55/hr.
Typical labor burden ranges from 25-50% of base wages. This includes FICA (7.65%), unemployment (2-6%), workers' comp (2-15%), benefits (10-25%), and overhead (10-20%). High-risk trades have higher burdens.
HVAC technicians earn $25-50/hr base wage. Contractors typically bill $75-150/hr for HVAC work. Emergency/weekend rates may be 1.5-2x higher. Geography and project complexity significantly affect rates.
Break the project into tasks, estimate hours per task (use productivity rates), multiply by crew size and labor rate. Add contingency (10-20%). Use historical data from similar projects for accuracy.
It varies by trade: Plumbing/HVAC: 60-70% labor, 30-40% material. Painting: 80-85% labor. Roofing: 50-60% labor. Electrical: 55-65% labor. Always estimate both components separately for accuracy.
Yes, contractors should add profit margin (typically 10-25%) to their billing rate. Your rate should cover: actual wages, burden, overhead, AND profit. Otherwise you're working for free on the business side.
Prevailing wages are minimum rates required for federally-funded construction projects (Davis-Bacon Act). They include base wages and fringe benefits. Check DOL's Wage Determinations for your area and trade.
Federal law requires 1.5x pay for hours over 40/week. Some states require daily overtime. Overtime is expensive: $30/hr becomes $45/hr. Budget carefully and consider additional crew instead of extended hours.
Union labor typically costs 20-40% more due to higher wages and required benefits. However, unions may offer better training and consistent quality. Some projects require union labor (project labor agreements).
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Last Updated: January 2026