How to use this calculator
- Enter the number of people in the crew.
- Enter the hours each person works. For a three-person crew working an eight-hour day, enter 8, not 24.
- Enter the hourly cost per person. Choose a wage-only or loaded rate and keep that basis consistent.
- For different rates or work durations, calculate each group separately and add its cost to your estimate.
Formula and cost basis
Total person-hours = crew size × hours per person; labor cost = total person-hours × hourly cost per person
Worked example
Three people working 8 hours each use 24 person-hours. At an illustrative cost of $45 per person-hour, labor cost is 3 × 8 × $45 = $1,080. Entering 24 in the hours-per-person field would count the crew size twice and incorrectly produce $3,240.
Assumptions and common mistakes
- A wage-only rate excludes employer costs. A loaded rate may include payroll taxes, insurance, and benefits; record exactly what your rate covers.
- Overtime premiums, travel, supervision, and nonproductive time are included only if your entered hours or rate account for them. Split out hours with different rates.
- This result is labor cost, not the price to charge a customer. Add other job costs, overhead, and your chosen pricing allowance when preparing a bid.
Build your estimate: quantity, productivity, labor, equipment, and bid price →
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FAQ
Should I enter crew hours or person-hours?
Enter hours per person. A three-person crew working 8 hours uses 24 person-hours, but the hours input is 8 because the calculator already multiplies by crew size.
Can I use different hourly rates for each worker?
This calculator uses one rate at a time. Calculate each rate group separately, then add the results. Do the same for hours paid at different rates.
Does the result include payroll burden or profit?
Payroll burden is included only if it is in the hourly rate you enter. Profit is not added. The bid price or target margin calculator can help price the completed cost estimate.