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Free Labor Tool

What Does a Technician
Really Cost You?

Most contractors only count the wage. Find out your true cost per hour — including taxes, benefits, downtime, and overhead — so you never underprice a job.

Employee vs subcontractor True hourly cost Minimum billable rate
Technician type
Base compensation
$
What you pay the tech per hour
Subtract vacation, sick days
%
% of hours actually billed to customers
Employer taxes & benefits (employee only)
FICA / Social Security + Medicare Employer share — 7.65% of wages
FUTA / SUTA (unemployment tax) Typically $420–$600/year per employee
Workers comp insurance HVAC/electrical: ~$8–$15 per $100 wages
Health insurance contribution Your portion of employee health plan
Paid time off (vacation, sick) Avg value of PTO days per month
Other benefits 401k match, dental, uniform, phone
1099 Subcontractor — Simplified

With a 1099 subcontractor you pay their rate directly — no employer taxes, no benefits, no workers comp (verify with your insurer). However, their rate is typically 15–30% higher than an equivalent employee wage to account for their own self-employment taxes.


⚠️ Misclassifying employees as contractors can result in IRS penalties. Consult a CPA if unsure.

Overhead allocated to this technician
Vehicle / fuel per month Truck payment + gas + maintenance
Tools & equipment (monthly cost) Depreciation or payments on tools
Phone & communication Cell plan, tablet, radio
Uniform / PPE per month Shirts, boots, safety gear
Training / licensing Monthly cost of certifications, courses
Please enter the hourly wage.
True cost per billable hour
$—
You pay $— but the tech costs $— per hour total
Min. billable rate needed: $—/hr
Annual tech cost
total employer cost
Monthly tech cost
all-in per month
True cost / hour paid
vs wage paid
Billable hours / year
at % efficiency
Non-billable cost
downtime you absorb
Overhead burden
per billable hour
Full annual cost breakdown
Cost itemAnnual ($)
Minimum billable rates to break even on this tech
At 10% profit margin
At 20% profit margin
At 30% profit margin
At 40% profit margin
💡
AI Labor Insights
More Billable Hours = Better ROI

Your tech costs money every hour.
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