True hiring cost calculator
A salary is just the start. Enter role details and benefits to see the true annual cost of a new hire — including taxes, insurance, equipment, and the management time they consume.
Fully-loaded employee cost is typically 1.25–1.5× base salary once employer taxes, benefits, and overhead are included. This calculator surfaces those numbers before you make a hiring decision.
Hiring cost calculator
Employer payroll taxes
Benefits
Total cost
Annual
Monthly
Cost multiple
3-year total
Cost breakdown
How this tool works
Direct costs include base salary, employer payroll taxes (as a % of salary), annual health insurance premiums, and retirement contributions. Equipment and onboarding are one-time costs amortized over three years to reflect their annual impact. Management overhead is the estimated value of peer and manager time spent supporting the new hire, modelled as a percentage of their salary.
About this tool
Enter a base salary and select your region to calculate the real annual cost of a new hire: employer payroll taxes, health/medical insurance, retirement contributions, equipment, onboarding costs, and management time. The output shows total annual cost, monthly cost, the cost multiple over stated salary, and a full breakdown.
Frequently asked questions
Why is the true cost so much higher than the salary?
A salary is just the starting point. Employer payroll taxes (Social Security, Medicare, national insurance, super) add 10–30% depending on country. Benefits like health insurance, retirement matching, and equipment add further. Management overhead — the time your existing team spends onboarding, reviewing work, and managing the new hire — is often ignored but adds 15–25% on top. The fully-loaded cost is typically 1.25–1.5× the base salary for most hires in developed markets.
What is management overhead?
An employee consumes time from their manager and peers: 1:1s, code reviews, onboarding questions, planning meetings, performance reviews. A typical figure is 15–20% of the new hire's salary — roughly what a manager at their pay grade would spend per year supporting them.
How are one-time costs handled?
Equipment and onboarding/training costs are amortized over a three-year assumed tenure. This gives a more realistic year-one cost when averaged over the employee's expected time with the company. Adjust the amortization period by changing the values directly.
What payroll tax rates are used?
US: ~10% (7.65% FICA + ~2.5% average FUTA/SUTA). UK: ~15% employer National Insurance. Australia: ~12% (Super Guarantee + average payroll tax). These are simplified estimates — your actual rates depend on salary level, state/province, industry, and specific schemes. Use the Custom option to enter your exact rate.