Employee cost calculator
Salary is roughly two thirds of what an employee costs. Employer taxes, benefits, equipment and space make up the rest.
%
Space, equipment, software, admin.
%
Fully loaded annual cost
84 000.00
- Cost as a multiple of salary
- 1.400
- Monthly cost
- 7000.00
- Cost per nominal hour
- 52.50
- Cost per productive hour
- 70.00
- Charge-out rate for a 30% margin
- 91.00
- Productive hours a year
- 1200
Show the working
- Gross salary = 60 000
- Employer taxes and contributions = 15
- Benefits = 6000
- Overhead per head = 9000
- Billable or productive hours a year = 1600
- Utilisation = 75
- tax_cost = 60 000 * 15/100 = 9000
- Fully loaded annual cost = 60 000 + 9000 + 6000 + 9000 = 84 000
- Cost as a multiple of salary = 60 000 > 0 ? 84 000/60 000 : 0 = 1.4
- Monthly cost = 84 000 / 12 = 7000
- Cost per nominal hour = 84 000 / 1600 = 52.5
- Productive hours a year = 1600 * 75/100 = 1200
- Cost per productive hour = 1200 > 0 ? 84 000 / 1200 : 0 = 70
- Charge-out rate for a 30% margin = 70 * 1.3 = 91
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- total = salary x (1 + employer tax) + benefits + overhead
A loaded multiplier of 1.25 to 1.4 is typical in Europe; US employers often see similar figures once health cover is included.