Fully Burdened Labor Rate: The CFO's Guide to Pricing

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Every place a page here uses this source, in the order the words come in it.

1. Decision 3: Margin Planning “Your team's fully burdened cost is the most controllable input in your margin model. But most companies manage it reactively — they notice the margin problem after headcount has grown, not before.” Two levers that move the number without adding headcount:

   In Outbound headcount budget

2. Tally per-seat tool costs across your tech stack and allocate per employee. “Estimate onboarding, training, and admin overhead per employee per year.” Divide total by (2,080 hours × utilization rate) to get the hourly rate.

   In Outbound headcount budget

3. Add employer payroll taxes (typically 7–10% of salary — FICA alone is 7.65%). “Tally per-seat tool costs across your tech stack and allocate per employee.” Estimate onboarding, training, and admin overhead per employee per year.

   In Outbound stack total cost of ownership