The Fully Burdened Labor Rate Calculator helps you determine the total hourly cost of employing someone, including not only their base wage but also all indirect costs. These costs include fringe benefits, overhead, general and administrative expenses, and profit. The final result gives a more realistic and complete picture of what it truly costs to have an employee work for your business or organization.
This calculator is commonly used in business budgeting, project costing, government contracts, and financial planning. It helps managers, HR professionals, accountants, and project managers make better decisions when pricing services or planning workforce expenses.
This calculator falls under the Labor Cost Estimation Calculator category.
Formula
FBLR = BR * (1 + FB + OH + GA + P)
Where:
FBLR = Fully Burdened Labor Rate ($ per hour)
BR = Base Hourly Rate ($ per hour)
FB = Fringe Benefits (as a decimal, e.g., 30% = 0.30)
OH = Overhead Rate (as a decimal, e.g., 20% = 0.20)
GA = General and Administrative Expenses (as a decimal, e.g., 10% = 0.10)
P = Profit (as a decimal, e.g., 10% = 0.10)
By using this formula, employers can better understand the full cost of labor and avoid underestimating expenses.
Common Rates Table for Quick Reference
Here is a helpful table that shows fully burdened labor rates based on commonly used values. Use this table when you want a quick estimate without needing to calculate.
| Base Rate ($/hr) | Fringe (30%) | Overhead (20%) | G&A (10%) | Profit (10%) | Fully Burdened Rate |
|---|---|---|---|---|---|
| 20 | 6.00 | 4.00 | 2.00 | 2.00 | 34.00 |
| 30 | 9.00 | 6.00 | 3.00 | 3.00 | 51.00 |
| 40 | 12.00 | 8.00 | 4.00 | 4.00 | 68.00 |
| 50 | 15.00 | 10.00 | 5.00 | 5.00 | 85.00 |
| 60 | 18.00 | 12.00 | 6.00 | 6.00 | 102.00 |
These rates are useful for general estimates in contracts, proposals, and internal cost reviews.
Example
Let’s say your company pays an employee $25 per hour. In addition to that:
Fringe Benefits (FB): 30% = 0.30
Overhead (OH): 20% = 0.20
General and Administrative (GA): 10% = 0.10
Profit (P): 10% = 0.10
Apply the formula:
FBLR = 25 * (1 + 0.30 + 0.20 + 0.10 + 0.10)
FBLR = 25 * (1.70)
FBLR = 42.50
So, the fully burdened labor rate for this employee is $42.50 per hour. This is the rate you should use when budgeting for their time in project planning or cost recovery.
Most Common FAQs
It includes the base wage plus additional costs such as employee benefits, overhead, admin expenses, and profit margin. This gives the total cost per hour of having the employee work for the company.
It gives you a clear picture of actual labor costs. This is useful when pricing services, creating budgets, or preparing proposals, especially for government or fixed-price contracts.
Yes. Small businesses can benefit from understanding their labor costs more accurately. It helps in setting fair prices, managing expenses, and planning for growth.