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Hotel Hourly Payroll Calculator

Hourly hotel labor is 30–50% of total opex — true cost is 1.25–1.45x base wage.

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Loaded hourly cost

$27

Burden multiplier

1.35

Annual FTE cost (2080 hrs)

$56,160

How the math works

Loaded = base × (1 + tax + WC + benefits + PTO).

$20 × (1 + 8% + 4% + 15% + 8%) = $20 × 1.35 = $27.00/hr loaded. Annual FTE: $56,160.

How to Use

  1. Enter base hourly wage.
  2. Enter payroll tax %.
  3. Enter workers comp %.
  4. Enter benefits %.
  5. Enter pto + other %.
  6. Read loaded hourly cost.

Frequently Asked Questions

Burdened cost factors?

Base hourly wage × 1.25–1.45x burden multiplier: payroll tax (FICA/Medicare ~7.65%), workers comp (1–8% by job), unemployment (~2%), benefits (health 5–12%, 401k match 1–3%), PTO (3–5%), overtime premium (5–15% based on coverage), training/turnover (2–5%). Union markets (NYC, SF, LA, Chicago, Vegas hospitality): 1.50–1.75x burden due to richer benefits + work rule constraints.

How does this support hotel underwriting?

Hotel investors and operators use this calculator alongside RevPAR, GOP, and flow-through analysis to validate operating assumptions. Pair it with a comp set benchmark (STR or HotStats data), brand/franchise standards, and seasonal demand patterns. Output is most useful when triangulated against trailing twelve-month financials and a forward booking pace report.

Brand vs independent treatment?

Branded hotels (Marriott, Hilton, Hyatt, IHG, Choice, Wyndham) typically follow USALI 11th edition reporting which dictates how this metric flows through the P&L. Independent and lifestyle hotels have flexibility but most lenders still expect USALI-aligned reporting. Use brand standards or local CVB data when defaults aren't representative of your asset.

Seasonal sensitivity?

Inputs based on annual averages mask peak/shoulder/trough volatility. Resort properties may see 60–80% of annual revenue concentrated in 4–6 months. Urban transient is more even but dips for weekends. Model peak month, shoulder month, and trough month separately if seasonality exceeds 20% swing. Stress test with a 10–15% RevPAR shock for cycle planning.

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