Hidden Economics
True Cost of an Employee Calculator
The real cost of a hire — well above the salary once payroll taxes, benefits, software, and space are added. Budget from this number, not the offer letter.
Inputs
- Base salary — Annual gross pay before anything else.
- Payroll burden — Payroll taxes + benefits as a % of salary.
- Annual overhead per person — Software, equipment, workspace, and support costs.
How to use this calculator
- Enter the base salary, payroll burden percentage, and annual overhead per person.
- The headline is the fully loaded cost, which is always well above the salary.
- Budget hires from this number, not the offer letter, or you'll under-price your own work.
What each term means
- Fully loaded cost
- Salary plus taxes, benefits, and overhead: the real cost of a hire.
- Payroll burden
- Employer taxes and benefits as a percentage of salary (often 20–40%).
- Overhead per person
- Software, equipment, and workspace attributable to one employee.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.