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Business Calculators

Employee Cost Calculator

Work out the fully loaded cost of an employee including payroll taxes, benefits, equipment and overheads.

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%
%
$/year
$/year
$/year

Total annual cost

$90,720

Monthly cost
$7,560.00
Loading above salary
33.4%
Effective hourly cost
$46.52
Cost components
SalaryTaxes & pensionBenefitsEquipment & overhead

How this calculator works

Total = salary + payroll taxes + retirement + benefits + equipment + overhead

loading
the percentage the extras add on top of base salary

Example calculation

Illustrative example — not advice

Worked example — the employee cost calculator as it loads, using the default figures below.

  1. 01Enter base salary: $68,000.
  2. 02Enter employer payroll taxes: 9%.
  3. 03Enter employer retirement contribution: 5%.
  4. 04Enter insurance and benefits: $6,000.
  5. 05Enter equipment and software: $2,400.
  6. 06Enter workspace and overhead: $4,800.
  7. 07Read the total annual cost from the results panel: $90,720.

Total annual cost: $90,720. Monthly cost: $7,560.00. Loading above salary: 33.4%. Effective hourly cost: $46.52.

These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.

Important considerations

  • Recruitment and onboarding costs are additional in the first year.
  • Productive hours are fewer than paid hours once leave is deducted.

Terms used here

Frequently asked questions

What loading should I assume?

Between 25% and 40% above base salary is common, depending on benefits and location.

Disclaimer

Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.

Last reviewed 2026-08-01