Labour Cost Calculator
Build a job cost from hours worked, your hourly rate, materials, extras and VAT, then see the grand total.
Calculator
Enter time and rates first, then materials and any other costs. Choose a VAT rate if you need it on the total.
Job cost inputs
Results
Labour cost is calculated by multiplying the hours worked by the hourly rate. Materials and other costs are added to produce a subtotal. If a VAT rate is selected, VAT is applied to the subtotal to calculate the grand total.
How This Calculator Works
What it does
This calculator estimates the total cost of a job by combining labour, materials and other expenses. It can also apply VAT to provide a realistic total before preparing a quote or invoice.
How the calculation works
The labour cost is calculated by multiplying the number of hours worked by the hourly rate. Materials and any additional costs are added to produce a subtotal. If a VAT rate is selected, VAT is calculated on the subtotal and added to produce the final total.
Formula
- Labour Cost = Hours Worked × Hourly Rate
- Subtotal = Labour Cost + Materials + Other Costs
- VAT = Subtotal × VAT Rate
- Grand Total = Subtotal + VAT
Why it matters
Accurately calculating labour and material costs helps protect your profit, ensures your quotes are consistent and gives customers a clear breakdown of the work being carried out.
Related Tools
Frequently asked questions
Straight answers about this calculator and how UK trades use the figures day to day.
Should travel time be included in hours?
If you charge for it, yes. Many trades include travel or apply a call-out separately under other costs.
Is the hourly rate what I pay staff or what I charge?
Use the charge-out rate when estimating a customer price. Use wage cost when reviewing internal labour cost.
Where do subcontractors go?
Add them under other costs, or include them in materials if that matches how you cost the job.
Can I exclude VAT?
Yes. Choose No VAT for a net figure with £0.00 VAT. Use 0% Zero Rate when the supply is zero-rated but still shown on a VAT return.
How do I turn this into a customer quote?
Use the Quote Estimate Calculator for markup and discount, or create a branded quote in Total Tradesmen.
Does this include holiday or NI on labour?
Not automatically. Build those into your hourly rate or add them under other costs if you cost jobs that way.
Turn Job Costs Into Professional Quotes
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