Job costs and profit
How to calculate the real hourly cost of a crew
Calculate a crew's hourly business cost by dividing a defined period's relevant labour cost by the productive hours available under the same assumptions.
The short answer
Calculate a crew's hourly business cost by dividing a defined period's relevant labour cost by the productive hours available under the same assumptions.
Calculate a crew’s hourly business cost by dividing a defined period’s relevant labour cost by the productive hours available under the same assumptions. A wage rate alone may omit employment and paid non-productive time. Keep the definition explicit and have employment/tax inputs checked appropriately.
Explore the wider job costing and profit guides for the steps around this decision.
A simple teaching calculation
Suppose an illustrative crew has EUR 1,200 of defined weekly labour cost and forty productive person-hours available. The modelled productive-hour cost is EUR 30: 1,200 divided by 40.
| Input | Check |
|---|---|
| Relevant labour cost | Which wage and employment costs are included |
| Period | The same period for cost and hours |
| Productive person-hours | Actual capacity after consistently treated non-productive time |
| Job allocation | Correct people and hours |
| Travel treatment | Included here or allocated separately, not twice |
The example is arithmetic, not an Irish wage, payroll or employment-cost benchmark.
Apply the rate consistently
Two people working three hours use six person-hours. At the illustrative EUR 30 rate, that allocates EUR 180 to the job. A three-hour elapsed visit is not EUR 90 of labour for that two-person crew.
Revisit the inputs as crew composition and productive hours change. A period with training or unusually low available work can change the denominator; explain whether the rate is planned, normalised or actual.
JobDiary records hours and job costs, but payroll calculations and employment obligations remain separate. The operating model is useful only if the business documents which labour costs its rate contains and keeps job time complete.
Connect this to the next step
Continue with How to attach material costs to the right job. If the next issue is elsewhere in the workflow, use How to build a price book for a small trades business.
See JobDiary job costing to check how the product supports this work. Use the current product description and a trial to verify the fit for your business.
Sources and scope
Source scope reviewed on 1 October 2026. Worked examples are illustrative; they are not market averages or customer results.
When it is in JobDiary.
The method above is the point. This is what it looks like when the diary is doing it for you.
See how it works| Time | Job | Status |
|---|---|---|
| 08:30 | 7 The GreenMow, edge, hedge | Done |
| 09:15 | 23 Seabury DriveMow, weed | Done |
| 10:00 | 9 Brookfield LawnMow, feed | In progress |
| 11:05 | 12 Castle ParkMow, hedge rear | Next |
| 12:00 | 31 Church RoadMow | Scheduled |
| 13:15 | 18 The RiseMow, edge, bins out | Scheduled |
Product screens use demonstration data.
What this guide is based on
JobDiary was developed around a real Co. Louth trades operation with2 vans and live business records since 2025. This guide provides an editorial framework; worked examples are illustrative. Product screenshots use demonstration data.
