Tool 06 · Cost

Construction Overtime Margin Calculator

Test whether overtime work still covers its loaded labor cost after premium pay, burden, and reduced productive output.

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  • Local calculation
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DecisionDoes this overtime shift preserve enough gross margin?

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Your result

Gross contribution$288.00
Margin on overtime revenue
23.5%
Loaded overtime cost
$936.00
Break-even customer rate
$65.00

Planning estimate based only on the values above. Inputs remain in this browser and are not submitted.

Method

How the calculation works

  1. Loaded OT cost = base wage × multiplier × (1 + burden) × paid hours
  2. Productive hours = paid hours × productivity factor
  3. Break-even rate = loaded OT cost ÷ productive hours

Worked example

Sixteen hours at a $30 wage, 1.5× premium, and 30% burden cost $936. At 90% productivity, the break-even customer rate is $65 per productive hour.

Read the full methodology

Know the boundary

What this estimate does not decide

  • Collective bargaining, prevailing wage, state law, shift differential, and double-time rules are not inferred.
  • Schedule acceleration may also change supervision, equipment, rework, and safety cost.

Questions

Overtime impact FAQ

Why include productivity?

If paid overtime produces fewer recoverable units or hours, each productive hour carries more labor cost.

Does burden apply to the premium?

Treatment varies by cost and jurisdiction. Enter the effective burden rate supported by payroll and insurance records.