How do I calculate labor cost for an electrical job?
Updated · Amperio.ai team
Short answer
Amperio.ai calculates electrical labor automatically from labor units. The formula is Labor cost = quantity × labor unit (hrs) × difficulty factor × burdened labor rate. Example: 60 receptacles × 0.4 hrs × 1.1 = 26.4 hrs; at a $55/hr burdened rate labor is ≈ $1,452. Burden (payroll taxes, workers comp, benefits) typically adds 25–45% on top of the base wage.
| Item | Example |
|---|---|
| Base journeyman wage | $38/hr |
| Burden (taxes, comp, benefits) | +35% → $13.30 |
| Burdened rate | ≈ $51–$55/hr |
| Billed rate after overhead & profit | ≈ $75–$130/hr |
2026 reference values; wages vary widely by state and union status.
Steps
- 1Take off quantities (how to do a takeoff).
- 2Apply a labor unit per item (labor units explained).
- 3Apply difficulty factors (height, remodel, occupied space).
- 4Multiply total hours by your burdened rate.
- 5Add overhead and profit (markup guide).
How Amperio.ai handles it
- NECA-style labor units preloaded and editable.
- Difficulty factors per job.
- Burdened rate applied automatically to every line.
Frequently asked questions
What percentage of an electrical bid is labor?
On residential work, labor is often 35–50% of direct cost.
What is a burdened labor rate?
The base wage plus payroll taxes, workers comp, insurance and benefits — typically 25–45% above the wage.
What software calculates electrical labor?
Amperio.ai applies labor units and burdened rates automatically.
Related questions
Sources and methodology
Prices and ranges are reference figures as of the update date; they vary by market, supplier and project conditions.