Employee Cost Calculator
See the true cost of an employee beyond salary — payroll taxes, benefits, and overhead — as an annual total and a multiple of base pay.
True annual cost
$112,000
1.40× base salary · $9,333/mo
Taxes
$8,000
Benefits
$16,000
Overhead
$8,000
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How to Use This Calculator
Enter the base annual salary.
Add payroll-tax % and benefits %.
Include annual overhead (software, equipment, space).
We total the true annual cost and the salary multiplier.
Frequently Asked Questions
What is the true cost of an employee?
Typically 1.25–1.4× base salary once you add payroll taxes, benefits, and overhead (software, equipment, space). This calculator shows your exact multiplier.
What payroll-tax percentage should I use?
In the US, employer-side taxes (Social Security, Medicare, unemployment) commonly total around 7.5–10% of salary, varying by state and wage level.
What should I include in overhead?
Anything you spend to enable the role: software licenses, hardware, office/remote stipend, and a share of facilities. Even remote employees carry tool and equipment costs.
Why does the salary multiplier matter?
It turns “we pay $80k” into the real budget impact. Knowing the multiplier (e.g. 1.35×) lets you plan headcount, pricing, and capacity accurately.
How does this help build-vs-buy decisions?
Compare the true loaded cost of a hire against software or outsourcing that does the same work. Often a tool at a fraction of one salary covers the need.
Why Use This Calculator
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Reveal true cost beyond base salary
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Factor in taxes, benefits, and overhead
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See the cost as a multiple of salary
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Budget headcount accurately
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"We use these calculators in every client pitch. They make it easy to set realistic expectations and prove projected ROI."
Account Director, Digital Agency