Labor Burden Rate Calculator

Set labor rates with a clear view of the full employer cost. This Excel workbook starts with base salary, adds employer costs, and spreads the total across your expected productive hours for the year. It calculates the fully burdened hourly cost, the burden multiplier on base pay, and the fully burdened annual cost. Use those figures when preparing bids or setting client rates.

A working model with a rate card built in

Enter the role salary and expected productive hours. Then set each burden component as a percent of base pay: payroll taxes, health and dental, retirement, workers compensation, paid time not worked, training, equipment, and overhead. The Rate Card tab applies that profile across several roles and shows the base hourly, the burdened hourly, the annual burden, and the fully burdened annual cost for each. The sourced Benchmark tab checks every input against published 2026 SSA, IRS, BLS, and workers-compensation figures. The one-page Summary tab brings the headline numbers together. The workbook opens with a worked example so you can follow the calculation before entering your own figures.

Built for

• Agencies, consultancies, and contractors calculating fully burdened hourly costs for bids and client rates.
• Finance and operations partners comparing the full cost of a role for budgets or make-versus-buy decisions.
• Small business owners setting bill rates that account for employer costs and protect their margins.

For the full annual cost of a hire, including recruiting and ramp, see the Employee Cost Calculator. To calculate the recruiting cost of filling a role, use the Cost Per Hire Calculator.

Before you buy

What format is it, and can I edit it?

You get one Excel workbook that also works in Google Sheets. The download is five files: the workbook, a Start Here, the one-page Quick Reference, the product license, and a short guide to using it in Google Sheets. Every input and formula is editable. Duplicate the file to prepare a bid for another role or compare different profiles. Your download link is available immediately after checkout, with the same link emailed on your receipt.

What does the paid workbook do that a free calculator does not?

Use the Rate Card to apply one burden profile across several roles. The sourced Benchmark tab helps you check every input against published figures, and the one-page summary brings the results together for pricing or budget reviews. You can adjust the open formulas to reflect your own taxes, benefits, and overhead. A quick browser estimate gives you a single number. This workbook gives you the rate card, the sources, and a file to reuse whenever pay or rates change.

What is the refund policy?

Digital products are covered by a 30-day money-back guarantee. To request a refund, email support@truestephr.com or reply to your receipt within 30 days of purchase. Questions? Email support@truestephr.com.

These are planning estimates built from your inputs, not legal or tax advice. Labor burden varies by location, industry, benefits, and overhead. Enter your own figures for each component and review the total before submitting a bid.

How the download works

Your files arrive as a single ZIP download, best opened on a computer. Save it, extract it (right-click and select Extract All on Windows, or double-click on a Mac), then open the Start Here file first. PDFs open in any reader, and editable files work in Microsoft Excel or free equivalents, including LibreOffice and Google Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.

Scope

This planning and analysis model produces estimates based entirely on the inputs and assumptions you enter. Use those estimates to support decisions, rather than as accounting, tax, or legal conclusions. Check the assumptions against your own data. Have qualified counsel review decisions involving pay, headcount, or separation against applicable law before acting. General information, not legal, tax, or financial advice.