Employee cost calculator
A $28 an hour technician costs far more than $28 an hour. Add the taxes, insurance, truck and paid time off to see the true cost, and the rate you must bill to make money.
Why the wage is not the cost
Every hour you pay for brings extra costs: employer payroll taxes, workers' compensation, insurance, paid time off, the vehicle and tools. On top of that, not every hour you pay for can be billed to a customer, because of travel, shop time and slow days.
Divide the full yearly cost by the hours you can actually bill, and you get the number that matters: the minimum you must charge per hour just to break even on labor.
Work you can look at
Questions people ask
How much more than the wage does an employee cost?
Commonly 25% to 40% more for payroll taxes, workers' comp and benefits alone. Add a truck and tools and a field technician often costs 50% to 80% more than the wage.
What is a billable share of 70%?
It means 70% of the hours you pay for are on a job that you invoice. The rest is drive time, ordering parts, training and gaps. Many service companies land between 55% and 75%.
Does this include overhead?
No. It covers one person's direct cost. Overhead such as rent, office staff, software and insurance should be added when you price a job.
Is this financial, legal or tax advice?
No. It is a free estimate to help you plan and to start a conversation with your lender, accountant or advisor. Check the real figures with them before you decide.
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This is an estimate for planning, not financial, legal or tax advice.