Labor Rate Calculator Result

Working Forward

Tech pay with load ⓘ🛈

$ 0

XThis is what you are paying your tech per hour with a load calculated in (30% is used for the load – load accounts for FICA tax, FUTA tax, workers’ compensation, paid vacation, paid time off, holidays, meals, etc.). It is equal to what you pay your tech, multiplied by 1.3 or adding 30% to their pay for benefits, taxes and other costs.

Your effective labor rate needs to be ⓘ🛈

XIf you are paying the amount per hour calculated in the box to the left, then your effective labor rate needs to be this amount. (Effective is the combination of all of the various labor rates that you might charge.)

$ 0

Working Backward

(If you use effective labor rate calculated)

Tech pay with load ⓘ🛈

XThis is what you pay your technician per hour including all taxes, benefits, training expenses, and anything else you do for your technician.

$ 0

You can afford to pay (per hour) unloaded ⓘ🛈

XIf you pay your technician (the amount in the box on the left), this number is what you can afford to pay them without the additional costs. This is the unloaded dollar amount you can afford to pay them per hour.

$ 0

Adding in Productivity Rate

In order to afford to pay highest paid tech per hour ⓘ🛈

XIf we use a loaded cost and include technician productivity into the calculation. It is tech loaded cost divided by (100% - 72% actual productivity) - or ($40 / .28 = $142.86)

$ 0

Disclaimer: This calculator is intended for informational purposes only. Please consult a financial professional for expert advice.

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What these results mean

Need help interpreting these calculator results? We’ve got you covered! Cecil Bullard, CEO of our calculator sponsor The Institute for Automotive Business Excellence, is here to provide a detailed walk-through.