Remodeling Real Cost of Labour Calculator
What you pay a remodeling tech and what an hour of their time actually costs you are two different numbers. See your true cost per billable hour once payroll burden and non-billable time are in.
Built for remodeling owners who'd rather know than guess. Your numbers stay in your browser.
Burden = taxes, insurance, benefits, paid time off. Utilization = the share of paid hours that are actually billable once travel, admin, and downtime are out.
| Wage you pay | $32/hr |
| Burdened wage | $41/hr |
| True cost / billable hour | $78/hr |
| Hidden cost per hour | $47/hr |
Bill labour below the true cost and every hour loses money, no matter how busy the crew looks.
What you get
Three reasons this earns its place on your desk
See the real hourly cost
The gap between the wage you pay and the true cost per billable hour is usually wider than owners guess.
Stop under-charging labour
Once you know the real number, you can set a labour rate that actually covers burden, downtime, and overhead.
Price from facts, not gut
Feed the true hourly cost straight into your remodeling quotes instead of guessing.
How it works
The math behind the number
Your true cost per billable hour is the burdened wage (pay plus taxes, insurance, and benefits) divided by the share of paid hours that are actually billable. Non-billable time spreads the same cost over fewer hours, so the real number sits well above the wage.
The defaults
Remodeling benchmarks (2026)
The calculator starts from the 2026 figures sourced below, so the first number you see is realistic, then you replace them with your own.
| Benchmark | Typical value |
|---|---|
| Average job value | $20,000 |
| Gross margin | 29.9% |
| Net profit margin | 6.3% |
| Median field-tech wage | $31.55/hr |
| Payroll burden | 30% |
| Billable utilization | 65% |
| Billed labour rate | $45/hr |
| Close rate | 35% |
| Marketing % of revenue | 8% |
Sources
- NAHB — Home Remodeling Profit Margin Jumps (Remodelers' Cost of Doing Business, 2026 edition; 2024 data: 6.3% net / 29.9% gross)
- NAHB — Remodelers' Cost of Doing Business, 2026 Edition (BuilderBooks product / study source)
- BLS — Occupational Employment and Wages, May 2025 (OEWS news release; Carpenters 47-2031 and Construction Laborers 47-2061 wages)
- BLS OEWS May 2025 release summary — Carpenters median $31.55/hr, Construction Laborers median $25.02/hr
- CountBricks — Residential Construction Labor Rates, U.S. (Feb 2026): carpenter/handyman billed labor rates
- Angi — How Much Do General Contractors Charge Per Hour (2026): $50-150/hr billed labor
- SmartBarrel — Labor Burden in Construction (20-35% typical; remodels 35-45%)
- Projul — What Your Workers Really Cost Per Hour (construction labor burden)
- Hook Agency — What's a Good Closing Rate for Contractors (30-40% best-in-class; <15% poor; referrals 50%+)
- InnerSpark Creative — 2025 Construction & Remodeling Marketing Benchmarks (marketing % of revenue)
- ServiceTitan — Labor Rate Calculator / Billable Hours guide (trade utilization and billable-rate methodology)
- Harvard JCHS — As the Remodeling Industry Has Expanded, So Has Contractor Specialization and Scale (project size context)
Benchmarks pending final verification. The default values are directional until source verification clears.
Get the download
Email me the editable worksheet
Get the spreadsheet so you can run every role and keep your true labour cost current.
FAQ
Common questions
- What is the real cost of labour?
- It is the burdened wage (pay plus taxes, insurance, and benefits) divided by the share of paid time that is actually billable. Non-billable time — travel, admin, downtime — spreads the same cost over fewer billable hours, so the real number is higher than the wage.
- What is payroll burden?
- The employer costs on top of wages: payroll taxes, workers comp, insurance, benefits, and paid time off. For most trades it adds 15 to 30 percent on top of the base wage.
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