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Construction · Cost

Labor Cost

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Use this to estimate labor cost by multiplying job hours by crew size and the hourly rate.

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Interactive workbench

Framing crew

Hours×Crew Size×Hourly Rate

40 hours with a 3-person crew at $35/hour is $4,200 of labor.

Step 1 of 4

Variables and units

  • Hours

    Hours the job takes.

    count

  • Crew Size

    Number of workers on the crew.

    count

  • Hourly Rate

    Fully loaded hourly rate per worker.

    currency

Common mistakes

  • Using base wage without burden.
  • Forgetting overtime hours.

Step-by-step example

Framing crew

  1. 1. Start with the example inputs

    • Hours40
    • Crew Size3
    • Hourly Rate$35

  2. 2. Apply the formula

    Hours×Crew Size×Hourly Rate

  3. 3. Run the numbers

    $4,200.00

    40 hours with a 3-person crew at $35/hour is $4,200 of labor.

What this result means

$4,200.00 is the crew's labor cost for the job at the stated hourly rate. Make sure the rate is fully burdened — payroll taxes, insurance, and benefits add real percentages on top of wages — or the bid silently undercharges every hour.