Labor Cost Calculator
Calculate the real cost of your time for making, packing, listing, or fulfilling products — including overhead and supplies, spread across units.
- Free calculator
- Instant estimate
- No signup needed
- Beginner friendly
Enter every amount in the same currency. This selector only changes the symbol shown — it does not convert exchange rates.
Total cost per unit
$3.50
Labor + overhead
Labor cost per unit
$3.00
Total labor cost
$30.00
1.50 hours × $20.00
Total cost (batch)
$35.00
Short example
1h 30m × $20.00/hr = $30.00 labor. Across 10 units, that's $3.00 labor per unit — $3.50 with $5.00 of overhead spread across the batch.
All calculations are estimates based on average platform fees. Real profits may vary depending on category, ads, and shipping.
Free worksheet for your next step
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How to use this calculator
- Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
- Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
- Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.
Formula
Total hours = Hours + Minutes ÷ 60 · Labor cost = Hours × Rate · Per unit = (Labor + Overhead) ÷ Units · Total = Labor + Overhead
Worked example
1 hour 30 minutes at $20/hr, 10 units, $5 overhead.
- Total hours = 1.5
- Labor = 1.5 × 20 = $30
- Per unit = 30 ÷ 10 = $3
- With overhead = ($30 + $5) ÷ 10 = $3.50
Answer: $3/unit labor; $3.50/unit including overhead
How it works
If you'd have to pay someone to do this task, that's the real cost — even when you do it yourself. Pricing that doesn't include labor eventually burns you out.
How to interpret your results
- Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
- Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
- A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
- Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.
Common mistakes
- Charging $0 for your own time.
- Rounding time down — track actual minutes.
- Forgetting to spread overhead like tool wear, workspace, and supplies.
Related Guides
Go deeper with plain-English guides on the same topic.
- Profit guideBusiness PlanningWhat Is a Good Profit Margin?
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- Pricing guideBusiness PlanningPricing Psychology Explained: 25 Strategies That Increase Sales
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- Pricing guideBusiness PlanningHow to Price Handmade Products
A simple formula for pricing handmade work that covers materials, labor, overhead, and profit.
FAQ
- What hourly rate should I use?
- At minimum, your local living wage. For skilled work, use what you'd charge a client — this is 'what if I hired myself'.
- Do I count listing and admin time?
- Yes — spread it across the products it supports. It's real time and it grows with volume.
Why trust this calculator?
This tool uses standard mathematical formulas and commonly accepted calculation methods, shown openly in the Formula section above so you can verify the math yourself. Results are estimates based on the information you enter and do not account for every individual circumstance. For important financial, tax, legal, medical, or business decisions, please double-check with a qualified professional before acting on the numbers.
What to calculate next
Once you have your number, the matching lesson walks through what to do with it step by step.
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