Employee Cost Calculator
Estimate the true cost of an employee beyond salary — payroll taxes, benefits, retirement match, equipment and overheads — per year and per hour.
How to use
- 1Enter the salary and your employer payroll tax rate.
- 2Add benefits, retirement match and other yearly costs per employee.
How it's calculated
Total cost = salary × (1 + payroll tax % + retirement match %) + benefits + other costs. Cost per hour = total ÷ paid hours.
Frequently asked questions
What payroll tax rate should I use?
In the US, employer FICA is 7.65% plus federal and state unemployment taxes (often about 1–3% on low wage bases). Other countries' social contributions can be 15–30%+.
How much more than salary does an employee cost?
Commonly 1.25 to 1.4 times salary once taxes, benefits and overheads are included.
What overheads should I include?
Equipment, software licences, office space, training, recruiting fees spread over the year, and insurance.