Employee Cost Calculator
Use this calculator to estimate the total cost of your employees. With just a few simple inputs, you can calculate the full employment cost, including wages, taxes, and benefits.
Employee Cost Calculator
Total Estimated Employee Cost:
How To Use The Employee Cost Calculator
Follow these steps to calculate the full cost of employment for each employee at your organization:
- Employee salary or hourly rate: Enter the annual salary of the employee.
- Employer payroll taxes (%): Enter the percentage of payroll taxes your company is responsible for. This often includes Social Security, Medicare, unemployment, and other taxes.
- Benefits cost (% or $): Input the average cost of benefits per employee. You can enter it as a flat dollar amount or as a percentage of salary/wages (depending on how your calculator is set up).
- Overhead or other costs (optional): Add any additional costs associated with employing someone—this might include training, equipment, insurance, or office space.
- Bonus or commissions ($): Enter the total expected annual amount in bonuses or commissions for this employee. This can be a guaranteed sum or an estimated average based on performance history.
Hit “Calculate” to view the total employee cost.
Scroll down to view the results in the green box below – including total cost per employee and breakdowns by salary, taxes, and benefits.
Uses For The Employee Cost Calculator
Budget Planning: Use the calculator to estimate labor costs as part of your department or company budgeting process.
Hiring Decisions: Get a clear picture of the total cost of hiring a new employee, beyond just the salary.
Compensation Benchmarking: Use total cost figures to compare employee costs across roles or against industry averages.
Cost-Reduction Analysis: Identify where overhead or benefit costs might be reduced without affecting employee wages.
Transparency: Help leadership and finance teams understand the true cost of workforce investments.
Scenario Planning: Adjust inputs to test different compensation packages, benefit percentages, or tax rates for planning purposes.
Disclaimer: This calculator provides an estimate only. Always consult with your HR, payroll, or legal team to ensure accurate cost projections based on your organization’s unique structure, tax obligations, and benefits plans.
