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Employee Cost Calculator

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Fully Loaded / Year
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Real Hourly Cost
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Cost / Salary Multiple

An employee costs far more than their base salary once you add payroll taxes, benefits, equipment, software and a share of office overhead. Underestimating that true cost is how small businesses quietly lose margin on every hire. This calculator starts with the base salary, adds employer payroll taxes as a percentage, then adds annual benefits and other fixed overhead in dollars to reveal the fully loaded annual cost. It also divides by the working hours you enter to show a real hourly cost, which is the number you should compare against billable rates and revenue per employee. Founders and hiring managers use this to price services, set budgets and decide between full time staff and contractors. Enter the figures for your situation and every result updates instantly. All calculations run locally in your browser, so your payroll data stays private and on device.

How to use Employee Cost Calculator

  1. Enter the employee salary.
  2. Add payroll taxes, benefits and overhead.
  3. Read the true annual and hourly cost.

Frequently asked questions

What goes into the true cost of an employee?

Beyond salary, it adds payroll taxes, benefits and overhead to reveal the fully loaded annual and hourly cost.

Why is the true cost higher than salary?

Employer taxes, insurance, benefits and workspace overhead add a significant amount on top of the base salary.

Can it show an hourly cost?

Yes. It converts the fully loaded annual cost into an hourly figure so you can price work or compare against contractors.

What is Employee Cost Calculator?

An employee costs far more than their base salary once you add payroll taxes, benefits, equipment, software and a share of office overhead. Underestimating that true cost is how small businesses quietly lose margin on every hire.

Is Employee Cost Calculator free to use?

Yes. Employee Cost Calculator is completely free, with no sign-up and no usage limits.

Does Employee Cost Calculator work in a web browser?

Yes. Employee Cost Calculator runs in any modern web browser. There is nothing to download or install.

Is my data private with Employee Cost Calculator?

Yes. Employee Cost Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.