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Loaded Labor Rate

Calculate your true per-hour cost of a technician including all overhead.

Loaded Rate (per hour)

$56.34

Total Cost per Tech (monthly)

$9,747

What Is a Loaded Labor Rate?

Your technician's hourly wage is just the starting point. The loaded labor rate captures the full cost of employing a technician: wages, benefits, payroll taxes, workers' comp, uniforms, training, and shop overhead allocated per tech.

Common Cost Multipliers

  • Benefits: Health insurance, PTO, and retirement typically add 20–35% on top of base wage.
  • Payroll taxes: FICA, FUTA, state unemployment add roughly 7.65–10% to total cost.
  • Overhead allocation: Rent, utilities, tools, and insurance per tech can add $5–15/hr depending on market.

Why It Matters for Pricing

  • Pricing below loaded cost: You lose money on every billed hour, even at "full capacity."
  • Rule of thumb: Your door rate should be 2.5–3.5× the loaded labor cost to maintain healthy GP.
  • Review quarterly: Insurance and benefit renewals shift your loaded cost annually — quarterly reviews keep pricing aligned.

Benchmarks referenced from leading automotive coaching groups including ATI, Elite Worldwide, Transformers Institute, Shop Fix Academy, 180BIZ, DRIVE, and the Institute for Automotive Business Excellence.

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