How does the Labor Cost Calculator work?
The formula to calculate the labor cost is
Labor cost percentage = Total labor cost/total revenue
Modisoft’s labor cost calculator calculates the labor cost on the basis of the values you provide for annual gross hours, hourly pay rate, absent hours, additional annual costs, total revenue, and total employee count. This tool will calculate

Your employee’s total gross pay

Annual payroll labor cost

Total net hours worked

Labor cost percentage

Other annual costs
When to use the Labor Cost Calculator?

Evaluating pricing & costing

Opening a new business

Expanding your team
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