Project Labor Cost Calculator
Add up what the people on a project cost, role by role.
What this calculator does
Hours are multiplied by the loaded cost the firm enters for each role and summed. No standard rate, role mix or working year is assumed.
Inputs and what they mean
- Currency
- — Amounts are shown in the currency you pick. No exchange rate is applied..
- Role 1 — loaded cost per hour
- — number value.
- Role 1 — hours on the project
- — number value.
- Role 2 — loaded cost per hour
- — Optional component. Leave at 0 to exclude it from the result..
- Role 2 — hours on the project
- — Optional component. Leave at 0 to exclude it from the result..
- Role 3 — loaded cost per hour
- — Optional component. Leave at 0 to exclude it from the result..
- Role 3 — hours on the project
- — Optional component. Leave at 0 to exclude it from the result..
How to use it
- Enter your own figures — the calculator never fills in a rate, price or benchmark for you.
- Press Calculate to see the result.
- Read the formula, variables, assumptions and source below the result before you rely on it.
Formula
Project labour cost = Σ (Hours of role i × Loaded cost per hour of role i)
Worked example
Three roles on one delivery
Each role's own loaded cost is entered; no standard rate is assumed.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
Results depend entirely on the figures you enter and are rounded for display. They are for general information and education, not professional advice.
Reference: Rice University — Principles of Accounting, Volume 2: Managerial Accounting
Last reviewed:
Common questions
Formula, source and verification
Direct labour is accumulated per role, exactly as a job-order costing sheet accumulates direct labour.
The question it answers: What will the people on this project cost us in total?
The formula
Project labour cost = Σ (Hours of role i × Loaded cost per hour of role i)
- h_i — Hours of role i
- (h). Hours that role will spend on the project.
- r_i — Loaded cost per hour of role i
- (currency/h). Employer cost per hour for that role, entered by the firm.
Units: Hours; currency per hour; currency.
What kind of calculation this is
Deterministic formula. The same inputs always give the same answer. The maths is fixed and does not depend on judgement.
Method
Hours are multiplied by the loaded cost the firm enters for each role and summed. No standard rate, role mix or working year is assumed.
Assumptions built into the result
- Mathematical: Loaded cost per hour already includes the employer costs the firm chooses to load.
Figures this calculator will never guess for you
- No industry-average rate, margin, overhead or ticket volume is inserted.
- No optional component is filled in on the user's behalf.
Limitations
- Covers labour only; materials, travel and overhead belong in the project cost calculator.
Source and version
- Standard or reference
- Cost accumulation, cost-plus pricing, margin and markup (OpenStax, Principles of Accounting Volume 2: Managerial Accounting — job order costing, cost-plus pricing, margin and markup.)
- Published source
- Rice University — OpenStax (CC BY)
- Formula version
- Version 1
- Verification
- Reviewed against the cited source on
- How much weight the source carries
- Academic
- Applies to
- Currency
- Amounts stay in the currency you choose; no exchange rate is applied.
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