BIZOMAT Tools · Quoting
Labour Quote
What should the labour portion of the job cost?
Builds a labour sell value from hours, base rate, on-costs and target margin.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Estimated labour | hr | Estimated labour hours from a task breakdown or past jobs |
| Base hourly rate | $/hr | Base hourly wage |
| On-cost / overhead | % | On-cost loading from finance (superannuation, leave, payroll tax, insurance, overhead) |
| Target margin | % | Target gross margin |
What each input means
Open an input to see what it is, its units, the worked example and the common mistakes, with a small diagram.
What this means: Estimated labour
- What it is
- The labour time the job is expected to take, from a task breakdown or records of similar past jobs.
- Units and format
- Enter a number in hr: hours. The form accepts 0 hr or more.
- Example
- The form opens with 20 hr as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Labour cost and sell value rise in proportion.
- Get it right
- Include travel, set-up, clean-up and paperwork if they are charged to the customer.
What this means: Base hourly rate
- What it is
- The base hourly wage paid to the worker, before superannuation, leave, payroll tax and overhead are added.
- Units and format
- Enter a number in $/hr: money per hour. The form accepts $0/hr or more.
- Example
- The form opens with $45/hr as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- The loaded rate and sell value rise in proportion.
- Get it right
- Enter the base wage here; on-costs are added by the next field, so do not use a loaded rate or they are counted twice.
What this means: On-cost / overhead
- What it is
- The loading added to the base wage to cover superannuation, leave, payroll tax, insurance and overhead, as a percentage of the base rate.
- Units and format
- Enter a number in %: percent: the number is read as a percentage, so type 8 for 8 %. The form accepts 0% or more.
- Example
- The form opens with 35% as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Loaded rate = base rate × (1 + on-cost %).
- Get it right
- Type the percentage (35 for 35 %). Get the loading from finance rather than estimating it.
What this means: Target margin
- What it is
- The gross margin to earn on the labour, as a percentage of the labour sell value.
- Units and format
- Enter a number in %: percent: the number is read as a percentage, so type 8 for 8 %. The form accepts 0% to 99%.
- Example
- The form opens with 25% as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Sell value = labour cost ÷ (1 − margin).
- Get it right
- Margin is a share of the sell price, not a markup on cost.
Method and formulas
- Loaded rate = base rate × (1 + on-cost %)
- Labour cost = hours × loaded rate
- Sell value = labour cost ÷ (1 − margin)
Limitations
- Labour only; materials, travel and equipment are separate
Typical uses
- Service and installation quotes
- Setting hourly charge-out rates
Who it is for
- Service managers
- Estimators
What you get
- Labour sell value and effective sell rate
- Loaded rate and labour cost
Interpreting the result
- Compare the effective sell rate with your published charge-out rate
Learn the Concepts Behind This Tool
These BIZOMAT Library readings explain the method this tool uses, with worked examples.
Method explained here · Library collection
Timesheet and labour data for job costing: capturing hours accurately so job profits can be trusted
In Operational Data, Records and Controls
What it covers: Labour is often the largest and least accurate cost in job costing. How to structure timesheet data, calculate loaded labour rates, capture hours reliably and quote better.
BIZOMAT tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.