Contractor burden multiplierhigh risklow confidence
- Observed range
- 1.8 — 3 (typical 2.35)multiple of employee wage
- Why this value
- Published contractor pricing guidance and trade-association break-even material put the wage-to-billed-rate multiplier between roughly 1.8x for an owner-operator with minimal overhead and 3.0x for an insured company with vehicles, office staff, and target profit. We narrowed the shipped band to 2.0-2.75 because the extremes describe business models a homeowner rarely encounters: below 2.0 usually means an uninsured single operator, above 2.75 usually means commercial or specialty work. Roofing sits at the top of the band because workers' compensation for roofers is several times the rate of other trades.
- Applies to
- United States, all states. The multiplier itself is not regionally adjusted — regional variation enters through the underlying BLS wage, not through the burden.
- Known limits
- The single largest lever in every project calculator. A 10% error here moves every project estimate by roughly 6%.
- Sources
- Recorded before the richer schema; see rationale for provenance
- Last verified
- 2026-07-31 · reviewed annual