Loaded Labor Rate Calculator

Formula

The formula to calculate the loaded labor rate (LLR) is:

\[ \text{LLR} = \text{BP} + \text{B} + \text{O} \]

Where:

$\text{LLR}$ is the loaded labor rate ($ per hour)
$\text{BP}$ is the base pay ($ per hour)
$\text{B}$ is the benefits ($ per hour)
$\text{O}$ is the overhead ($ per hour)

What is a Loaded Labor Rate?

The loaded labor rate is the total hourly cost to employ a worker, including base salary, benefits, and overhead. This rate is often used in project costing and budgeting to estimate the true cost of labor. It provides a more accurate picture of employment costs than just the hourly wage or salary.

Example Calculation

Let's assume the following values:

Base Pay (BP) = $20 per hour
Benefits (B) = $5 per hour
Overhead (O) = $10 per hour

Using the formula to calculate the loaded labor rate (LLR):

\[ \text{LLR} = \text{BP} + \text{B} + \text{O} = 20 + 5 + 10 = 35 \text{ dollars per hour} \]

The loaded labor rate (LLR) is $35 per hour.