Labour cost Calculator: measuring notes and method
Distinguish crew hours from person-hours
Two people working eight hours each produce sixteen person-hours. Enter Hours per person as eight, not sixteen, or the crew size would be counted twice.
Use a consistent rate basis
Decide whether the hourly figure is a wage, a loaded employment cost or a subcontract charge. Keep that basis consistent across the people in the estimate.
CHECK A PRACTICAL EXAMPLE
Crew size changes person-hours
Compare two crews working eight hours per person at an illustrative cost of 60 currency units per person-hour.
Two people
- Labour cost
- 960 currency units
- Total person-hours
- 16 hours
Three people
- Labour cost
- 1,440 currency units
- Total person-hours
- 24 hours
This comparison holds duration fixed. A bigger crew does not automatically complete the same task in proportionally less time. The rate is an arithmetic example, not a wage or market quote.
Fixed comparison in metric units. Values are illustrative unless linked to a recorded project; changing the calculator above does not change this example.
Formula
Labour cost = people × hours per person × hourly cost.
Worked example
Illustrative values match Reset example and stay fixed when you edit the calculator.
Starting-value worked example
- Number of people
- 2
- Hours per person
- 8 hours
- Hourly cost per person
- 60 currency units
Labour cost: 960 currency units
Follow the calculation
- Person-hours = 2 × 8 = 16.
- Labour cost = 16 × 60 = 960 currency units.
Reviewed 19 October 2026. How calculations are checked · Report a correction