Labor Savings Calculator
Savings Calcuator Please complete the following form to calculate your labor savings. return to Management Consultants for Contractors HOME page Back to Home Page
This calculator will provide your ANNUAL savings provided you enter ANNUAL amounts. It may be more than you think!
Have your annual income statement available and find out how much profit you are leaving in the field by following 5 easy steps!
1. Enter the % Rate that you believe can be saved with more efficient productivity. For example, if you believe that your workers could easily improve productivity by 30 minutes, enter 6.25% (.5 hr/8 hr).
%


2. Enter your annual sales.      
$

3. Enter your typical gross margin % rate. Gross margin % = annual gross profit/annual sales.
%


4. Enter the combined amounts of you annual direct and indirect labor wages paid to produce your annual sales. Indirect labor is the amount of field wages that are incurred but not job costed.
$


5. Enter your average labor burden % rate. Components of labor burden are FICA, workmen's comp, vacation, holiday, sick days and company paid health insurance costs. Labor burden % = combined burden costs/labor.
%






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