Employee Cost Calculator
Calculate true employee cost — salary plus benefits, taxes, and overhead.
What is Employee Cost Calculator?
The employee cost calculator goes beyond salary to include benefits, employer-side taxes, and overhead — typically 25–50% on top of salary.
Formula
Total = salary + benefits% × salary + employer tax% × salary + annual overhead. Multiplier = total / salary.
Worked example
$75k salary + 25% benefits + 7.65% taxes + $8k overhead = $108k total. Multiplier 1.44×.
How to use this calculator
- Enter salary, benefits %, employer taxes %, and overhead per employee.
- True cost and multiplier appear.
Frequently asked questions
What goes in benefits %?
Health insurance, 401k matching, paid time off, life insurance, training/development. Typical for U.S. employer: 20–30% of salary.
What's "employer taxes"?
FICA (7.65%): Social Security 6.2% + Medicare 1.45%. Plus state unemployment, workers' comp (varies). Federal unemployment (~0.6%). Total typically 7.65–10%.
What overhead should I include?
Office space (per-employee allocation), equipment (laptop, phone, software licenses), HR systems, recruiting amortization. Typical $5,000–$15,000/year per employee.
Why is the multiplier 1.25–1.5?
Standard rule of thumb. A $100k salary actually costs $125k–$150k all-in. Useful for budgeting and pricing decisions for client-facing work.