MarginShock

Labor cost increase
calculator

Raises, minimum-wage changes, and overtime all move your cost per job. Enter the old and new hourly cost and the hours your team works each month to see exactly how much each job now costs you, and the price change that covers it.

Worked example

Example: hourly cost from $24.00 to $26.50, ~1,200 labor hours across 160 jobs

$18.75

extra cost per job

Extra / month
$3,000
Price increase
4.2%

Illustrative · enter your own below

Surcharge engine · inputs

Example numbers — replace with yours

Example: hourly cost from $24.00 to $26.50, ~1,200 labor hours across 160 jobs

The cost that changed
$
$
How much you use

From fuel cards, receipts, or supplier invoices.

How many jobs the cost is spread across.

Your pricing
$

Used to express the surcharge as a %.

%

e.g. 20 for 20%.

Hour change

▲ 10.4%

Extra / month

$3,000

Extra / job

$18.75

No account needed. Inputs are saved anonymously to build industry benchmarks — never shown individually. Privacy

(Finding your numbers)

What to enter.

  1. 01Previous and current cost per hour: use the fully loaded cost (wage plus payroll taxes and benefits) if you know it, or the wage alone for a minimum estimate.
  2. 02Hours per month: total paid labor hours across your crew in a normal month.
  3. 03Jobs per month and average job price: from your invoicing software.

(Pricing it)

Passing on a labor & wages increase fairly.

01

Use the loaded hourly cost

Payroll taxes and workers' comp rise with wages. Using only the wage understates the real increase.

02

Raise rates, not surcharges

Wage increases are permanent. Update hourly rates or job prices rather than adding a temporary line.

03

Explain it simply

'We've raised pay to keep experienced crews' is a reason customers respect. Keep the notice short.

(FAQ)

Labor & Wages cost questions

Guide: how much to raise prices →
01How much should I raise prices when wages go up?

At minimum by the extra labor cost per job. If labor is most of your cost, raise prices by enough to keep your margin percentage too. Our pricing guide shows both calculations.

02Does a minimum-wage increase affect me if I already pay above it?

Often yes, indirectly: you may need to raise other wages to keep pay differences. Enter the average new hourly cost across your team.

03Should I raise my hourly rate or my flat prices?

Raise whichever you bill. For flat-rate pricing, recalculate each task with the new hourly cost.

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