Employee Cost Calculator
Estimates the true total cost of an employee including salary, payroll taxes, benefits, and overhead
Employee base salary before additional costs
Health insurance, retirement, etc. as a percentage of salary
Employer-side payroll taxes (FICA default 7.65%)
Annual cost for equipment, office space, software, etc.
Enter salary to calculate total cost of employment
Total annual cost divided by 2,080 working hours
How much more the employee costs vs. base salary alone
Frequently Asked Questions
How much does an employee really cost?
The true cost of an employee is typically 1.25x to 1.4x their salary. A $60,000 salary employee may cost $75,000-$84,000 when you add payroll taxes (7.65%), benefits (health insurance, retirement matching), and overhead (equipment, office space, training).
What is included in employee overhead?
Overhead includes office space, equipment (computer, desk, phone), software licenses, HR administration, training and onboarding, management time, office supplies, and any perks or stipends. This typically adds 15-25% on top of salary and benefits.
How do I calculate cost per hour for a salaried employee?
Divide the total annual cost (salary + benefits + taxes + overhead) by 2,080 working hours (or actual hours considering PTO). A $60,000 salary with 40% burden = $84,000 total / 2,080 hours = $40.38/hour fully loaded cost.
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