Order Picking Labor Cost Calculator

What is this order picking labor cost calculator?

This calculator converts order lines into picking labor hours and values those hours at your loaded labor rate. A line is one distinct item entry on an order. Picking three units from a single line may take a different amount of time than picking three separate lines, so the average time should match your workflow.

How to use the calculator

Enter daily orders and average pick lines per order. Use a measured average handling time that includes normal travel and scanning. Add fixed setup or closeout person-hours only when they are not already included in the line time. Enter your loaded hourly cost.

Check the input assumptions

Review the help text beneath each field before calculating. Enter amounts in US dollars where shown and use consistent units. Change one assumption at a time to understand which inputs affect your result.

Formula and worked example

Example calculation

With 200 orders, three lines per order, and 45 seconds per line, variable picking takes 7.5 hours. Add two setup hours for 9.5 person-hours. At $25 per hour, the daily labor estimate is $237.50, or about $1.19 per order.

These numbers illustrate the calculation; they are not recommended rates or industry benchmarks.

How to interpret your result

Compare the required person-hours with the productive hours available from your team. This is an aggregate workload estimate, so it does not show whether enough pickers are available at a peak cutoff time.

What the estimate leaves out

The estimate assumes average line effort stays constant as volume changes. It does not model congestion, batching, stockouts, shift schedules, or overtime rules. Fixed setup costs still apply when you enter zero orders.

Frequently asked questions