Landed cost
Bring product, freight, duty, and fees into one number.
Costs & conversionCOSTS & CONVERSION
Warehouse Labor Cost per Order Calculator
Estimate paid warehouse labor cost per completed order, including an entered employer burden and other period labor charges.
Labor cost per order calculator
Estimate paid warehouse labor cost per completed order, including an entered employer burden and other period labor charges.
YOUR RESULT LIVE CALCULATION
Allocated paid labor cost
$2.5/ completed order
SAME PERIOD COST ALLOCATIONWagesBurdenOther labor
- Paid team labor hours
- 64 hours
- Base wage cost
- $1,408
- Employer burden
- $352
- Other period labor charges
- $240
- Total period labor cost
- $2,000
Paid breaks remain in paid cost. Other charges apply once to the period; do not double-count burden.
BEHIND THE NUMBER
How the calculation works
Use paid hours, including paid breaks, because this is a cost allocation rather than a net-productivity measure. Every worker uses the same entered hours and wage, or a justified blended basis. Employer burden is applied once to wages; other labor charges are added once for the whole period, not per worker.
Period labor cost = workers x paid hours x wage x (1 + burden / 100) + other labor charges; cost per order = period labor cost / completed orders
When this calculation helps
Relate labor cost and completed orders over the same period and activity boundary. Decide whether the comparison includes supervision, waiting, packing, and overtime before entering the totals.
Check the interpretation
An average cost per order can fall simply because order mix or volume changed. Separate fixed coverage from variable effort and compare quality and service alongside cost. This ratio does not identify which labor hours are avoidable.
This is not total fulfillment cost. Rent, packaging, freight, systems, and non-labor overhead are excluded unless deliberately included in your cost boundary. Avoid double-counting benefits already included in a fully burdened wage.
Good to know
Where do overtime and agency fees go?
Use a valid blended hourly wage or add confirmed incremental labor charges to the period total. Do not add the same charge to both inputs.
Should I subtract paid breaks?
No. Paid breaks remain part of paid labor cost. Picking productivity uses a separate denominator to distinguish paid and net labor hours.