A simple tool to bridge the gap between raw wages and shop-floor reality
Input Costs
True Hourly Rate
$48.24
Burden: 93%
How to Calculate Your Hourly Burdened Rate
Assumes a 2,080-hour work year and 8% average payroll tax.
The 7 Essential Inputs
- Base Hourly Wage
- Unit: Currency ($)
- Context: The raw rate paid to the employee.
- Annual Paid Time Off (PTO)
- Unit: Days per year
- The Logic: Include vacation, sick days, and holidays. This “shrinks” the number of hours the employee is actually working while still being paid.
- Statutory Payroll Taxes
- Unit: Percentage (%)
- Context: FICA, SUTA, FUTA. (You can provide a “Standard” toggle for 7.65% to make it easier).
- Benefits & Insurance
- Unit: Monthly Cost ($)
- Context: Health insurance premiums, 401k matching, and life insurance paid by the company.
- Workers’ Comp Rate
- Unit: Percentage (%) or $ per $100 of payroll
- The “Aha” Factor: In manufacturing, this is a significant “hidden” burden that varies by shop risk.
- Annual Shop Overhead (Allocated)
- Unit: Annual Currency ($)
- Context: Rent, utilities, and indirect supplies. The app should divide this by the total headcount to find the “per-person” share.
- Included with the “Benefits & Insurance” field.
- Productive Utilization
- Unit: Percentage (%)
The Reality Check: No one works 8 hours straight. Between setup, cleanup, and meetings, most shops run at 80-85%. This is the most important field for revealing the “Effective” cost.