Labor cost is the heart of a cleaning bid: hours times the burdened wage (wage plus payroll taxes and benefits). Get this right and the bid almost builds itself.
The example
4 hrs, $18 wage, 25% burden.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | 4 × 18 × 1.25 | — |
| 3 | Labor cost | → $90 |
The formula
The formula:
How it works
How it works:
- Start with hours (from area ÷ production rate).
- Multiply by the wage, then by (1 + burden) for taxes, insurance, and benefits.
- The burden rate (often 20–35%) is what turns a $18 wage into the true ~$23 cost.
- Add supplies and overhead, then markup, for the bid price.
Bidding on bare wage is how cleaners go broke. The $18/hour you pay is not your cost — payroll taxes, workers’ comp, and benefits add 20–35% on top, so the real cost is closer to $23. Always apply the burden factor before adding markup; quoting against unburdened wage silently eats your margin and can turn a “profitable” account into a loss.
Try it: interactive demo
Hours, wage, burden rate.
Variations
Burdened wage
True hourly cost:
Job cost (with supplies)
Labor + supplies:
Bid price
Cost + markup:
Pitfalls & errors
Burden the wage. Add taxes/insurance/benefits — never bid bare wage.
Real hours. Include travel/setup if you pay for it.
Then markup. Cost is not price — add margin after.
Practice workbook
Frequently asked questions
How do I calculate cleaning labor cost in Excel?
What's a burden rate?
How do I get the bid price?
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