Fully Burdened Labor Rate Calculator

Formula

To calculate the Fully Burdened Labor Rate ($FBLR$):

\[ FBLR = BR \times (1 + FB + OH + GA + P) \]

Where:

$FBLR$ is the Fully Burdened Labor Rate ($)
$BR$ is the Base Hourly Rate ($)
$FB$ is the Fringe Benefits (%)
$OH$ is the Overhead Rate (%)
$G&A$ is the General and Administrative Expenses (%)
$P$ is the Profit (%)

What is a Fully Burdened Labor Rate?

The fully burdened labor rate is the total hourly cost to employ a worker, including the base hourly wage plus all associated costs such as fringe benefits, overhead, general and administrative expenses, and profit. This rate is often used in project costing, budgeting, and pricing to ensure all labor-related expenses are accounted for.

Example Calculation 1

Let's assume the following values:

Base Hourly Rate ($BR$) = $20
Fringe Benefits ($FB$) = 10%
Overhead Rate ($OH$) = 15%
General and Administrative Expenses ($G&A$) = 5%
Profit ($P$) = 10%

Using the formula:

\[ FBLR = 20 \times (1 + 0.10 + 0.15 + 0.05 + 0.10) = 20 \times 1.40 = 28 \]

The Fully Burdened Labor Rate is $28.

Example Calculation 2

Let's assume the following values:

Base Hourly Rate ($BR$) = $25
Fringe Benefits ($FB$) = 12%
Overhead Rate ($OH$) = 18%
General and Administrative Expenses ($G&A$) = 7%
Profit ($P$) = 15%

Using the formula:

\[ FBLR = 25 \times (1 + 0.12 + 0.18 + 0.07 + 0.15) = 25 \times 1.52 = 38 \]

The Fully Burdened Labor Rate is $38.