Business

Employee Cost Calculator

True cost of hiring beyond salary.

Enter your values

ⓘ Live results

Results
True annual cost
$91,650.00
Multiplier on salary
1.31×
Employer payroll tax
$6,650.00
Monthly cost
$7,637.50
Cost per working hour
$44.06

Quick answer

A typical employee costs 1.25–1.4× their base salary once payroll taxes, benefits and equipment are included.

How to use the Employee Cost Calculator

  1. 1Enter the base salary offered.
  2. 2Add employer payroll tax percentage.
  3. 3Add benefits and overhead per year.

Worked example

Using the values the calculator loads with:

Inputs

  • Base salary70000 $
  • Employer payroll tax9.5 %
  • Benefits per year9000 $
  • Overhead & equipment6000 $

Results

  • True annual cost$91,650.00
  • Multiplier on salary1.31×
  • Employer payroll tax$6,650.00
  • Monthly cost$7,637.50
  • Cost per working hour$44.06

Frequently asked questions

What is the usual multiplier?

1.25–1.4× salary for most roles in the US.

Do contractors cost less?

Their hourly rate is higher but you skip payroll tax, benefits and often overhead.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.