Labor vs. Materials Cost Ratio Calculator
Calculate the ratio of labor costs to materials costs for your contracting project. Understand how your project budget is split and benchmark against industry standards.
Formulas Used
Labor-to-Materials Ratio
Labor-to-Materials Ratio = Labor Cost ($) ÷ Materials Cost ($)
Percentage of Total Project Cost
Total Project Cost = Labor Cost + Materials Cost + Overhead Cost
Labor % = (Labor Cost ÷ Total Project Cost) × 100
Materials % = (Materials Cost ÷ Total Project Cost) × 100
Overhead % = (Overhead Cost ÷ Total Project Cost) × 100
A ratio of 1.0 means labor and materials costs are equal. A ratio above 1.0 indicates a labor-heavy project; below 1.0 indicates a materials-heavy project.
Assumptions & References
- Benchmarks sourced from the RSMeans Construction Cost Data and the National Association of Home Builders (NAHB) Cost of Construction Survey.