Employee Cost Calculator

Determine the fully burdened total cost of hiring and supporting a full-time employee, including salary, benefits, taxes, and overhead.

Input Details

Base Annual Salary

Payroll Taxes Rate (FICA, FUTA, SUTA)

Employee Benefits Package Rate

Annual Role Overhead (Office, IT, Equipment)

Results

Fully Burdened Cost Summary

True Total Annual Cost

$79,100

An employee with a base salary of $60,000 actually costs your business $79,100 annually ($6,592/month). This equals an hourly equivalent rate of $38/hr, representing a 31.8% markup over the base salary.

Base Annual Salary$60,000

Taxes Amount$5,100

Benefits Amount$9,000

Monthly Cost$6,592

Hourly Equivalent$38/hr

Cost Overhead Markup31.8%

The Formula

Fully Burdened Employee Cost Math:

Taxes Cost = Salary × Taxes %
Benefits Cost = Salary × Benefits %
True Annual Cost = Salary + Taxes Cost + Benefits Cost + Annual Overhead
Hourly Equivalent = True Annual Cost / 2080 Hours (Standard full-time work hours)
Overhead Markup = ((True Annual Cost - Salary) / Salary) × 100

Example Calculation

If you hire a manager at a base salary of $70,000, with 9% payroll taxes, 15% benefit package, and $6,000 in annual desk/software overhead:
Taxes: $6,300 | Benefits: $10,500 | Overhead: $6,000 | True Cost: $70,000 + $6,300 + $10,500 + $6,000 = $92,800/yr | Markup: 32.6%

How to Use This Calculator

Enter the employee\'s expected annual **Base Salary**.
Set the **Payroll Tax Rate** (standard US rate is around 8% - 10%).
Input the **Benefits Rate** percentage representing health, retirement, and perks.
Enter the annual **Desk/Software Overhead** expenses specifically assigned to this role.

When This Calculator is Useful

Use this tool when **planning hires for the next fiscal year**, budgeting payroll allocations, comparing hiring vs. outsourcing proposals, or establishing pricing rates for client services.

Disclaimer Note

All results are estimates based on standard business formulas and rates. Actual project costs, ROI, and rates may vary based on market conditions, specific requirements, and contract agreements.

Frequently Asked Questions

The true cost of an employee, often referred to as "fully burdened cost," is the sum of their base salary plus payroll taxes (FICA, FUTA, SUTA), benefits (health insurance, 404k match, paid leave), and overhead expenses (office space, computer equipment, software licenses). Typically, an employee costs 1.25 to 1.4 times their base salary.

Standard federal taxes include Social Security (6.2%) and Medicare (1.45%) which sum up to 7.65% for the employer. Additionally, Federal Unemployment Tax (FUTA) and State Unemployment Tax (SUTA) can add another 0.5% to 3.0% depending on the state and employer history.

Common benefits include employer contributions to healthcare premiums, retirement/401(k) matches, life/disability insurance, paid time off, and bonuses. These benefits usually range from 10% to 30% of the employee's base salary.