Payroll Cost Calculator
True employee cost including taxes, benefits, and employer burden.
Base salary is only part of the cost. Add employer FICA (7.65%), unemployment, workers comp, benefits (health, 401k match), and overhead. True cost often runs 1.25–1.4x base salary. This calculator helps you budget for hiring.
Inputs
Results
FICA (7.65%): $3,825
Benefits: $7,500
Other burden: $2,500
Total annual cost: $63,825
Insights
Formula
FICA = Salary * 0.0765 Benefits = Salary * benefits% Burden = Salary * burden% Total = Salary + FICA + Benefits + Burden
Input Definitions
What does each input mean?
- Base salary
- Gross annual salary before taxes. Employer FICA (7.65%) is added automatically.
- Benefits %
- Employer cost for health insurance, 401k match, etc. as % of salary. Typical 15–25%.
- Other burden %
- Unemployment, workers comp, other payroll taxes. Varies by state.
Related Calculators
The True Cost of an Employee Goes Beyond Their Salary
When you hire someone at $60,000 per year, you don’t just pay $60,000 — you pay employer payroll taxes, benefits contributions, workers’ compensation, and often equipment, software, and onboarding costs on top. The real cost is typically 1.25 to 1.4 times the base salary, and ignoring that gap is one of the most common financial mistakes growing businesses make. This calculator gives you the all-in number.
Use it before making a hiring decision to understand the true budget impact, when building financial projections that include headcount growth, or when comparing the cost of a full-time hire versus a contractor. Knowing the loaded cost per employee is essential for accurate margin forecasting and ensuring you’re pricing your services high enough to cover your team.