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Tech pay and efficiency

A tech is paid for every hour on the clock but only bills some of them. Put in one tech’s week to see efficiency, labor cost as a share of what they bring in, and what a billable hour really costs you.

Your numbers

Every default is an example, not an industry figure. Replace it with yours. Everything stays in your browser.

Base hourly rate. Set to 0 for straight commission.

Commission as a share of the tech’s revenue. Use both fields for base pay plus commission.

Clock hours, including drive time, shop time and meetings.

Hours spent on paid work at the customer’s home, from your FSM time tracking.

Invoiced revenue from this tech’s jobs in a typical week.

Payroll taxes, workers’ comp, health insurance and other benefits as a share of pay. Ask your bookkeeper for your number.

How we calculate it

  1. Billable efficiency = billable hours ÷ hours paid
  2. Pay per week = hourly pay × hours paid + commission × revenue
  3. Loaded labor cost = pay per week × (1 + burden)
  4. Labor cost as % of revenue = loaded labor cost ÷ revenue
  5. Revenue per paid hour = revenue ÷ hours paid
  6. Effective cost per billable hour = loaded labor cost ÷ billable hours

Doesn’t include overtime premiums: if the tech works overtime, enter an average hourly rate that includes it. Labor cost here is the tech only, not the truck, tools or office.

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