Labor Cost per Order Calculator
Paid hours exceed productive hours.
Labour cost per order
$2.51
$1.96 at nominal utilisation
Only 78% of paid hours are productive once breaks, meetings and idle time are counted, so the real cost per order is $2.51 rather than $1.96. Planning headcount on nominal minutes understaffs by roughly a fifth.
How the Labor Cost per Order Calculator works
Only about three quarters of paid hours are productive once breaks, meetings and idle time are counted. Planning headcount on nominal minutes per order understaffs by roughly a fifth, which shows up as overtime rather than as a planning error.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I calculate labour cost per order?
Minutes per order times the loaded hourly rate, divided by the productive share of paid hours. The last division is the one usually skipped.
What is a realistic utilisation figure?
70% to 85% of paid hours being directly productive is typical. Anything above 90% either measures something narrower or describes an unsustainable pace.
What is a loaded hourly rate?
Wage plus employer taxes, pension, holiday cover and any agency margin. It is commonly 25% to 40% above the headline wage.
How do I reduce it?
Batch picking, better slotting, and packaging that goes together faster. Order profile matters too — a multi-item order costs far less per item than several single-item ones.