Employee Cost Calculator
See the true cost of hiring an employee—not just their salary. Add employer payroll taxes, benefits, workers' compensation, equipment and paid non-productive time to plan headcount with confidence.
01 Employee & Employer Details
02 Employer Costs
Total annual employee cost
Annual cost breakdown per employee
- Wages + overtime + bonus
- $0
- Employer payroll taxes
- $0
- Workers' comp
- $0
- Benefits + other
- $0
For planning only. Tax and insurance rules vary by location, employee classification and business.
How to calculate the true cost of an employee
Salary is only the first line. A useful employee cost estimate combines direct compensation with employer-paid payroll taxes, insurance, benefits, equipment and overhead—then divides that total by genuinely productive hours.
True hourly employee cost = Total annual employer costAnnual paid hours × productive time %
Start with direct pay
Regular wages, overtime premiums and annual bonuses.
Add employer-paid costs
Employer payroll taxes, workers' comp, benefits and operating costs.
Use productive hours
Account for vacation, training, admin time and normal downtime.
Employee cost calculator FAQ
To estimate the cost of an employee in California, select the California region preset and enter the employee's pay, overtime, benefits, workers' compensation and annual overhead. The calculator combines those inputs into a fully loaded annual and hourly cost. It also works for Fresno and other California locations, but local wages and employer rates vary, so replace the preset assumptions with the figures that apply to your business and employee classification.
Start with the employee's gross pay and annualize it based on the selected pay period. Add overtime, bonuses, employer payroll taxes, workers' compensation, health and retirement benefits, equipment, training and other employment overhead. Use the US Federal preset as a starting point, then add state-specific obligations. The result shows annual cost per employee, total team cost and true cost per productive hour.
The true cost of an employee is their salary or wages plus every employer-paid expense required to employ and support them. That includes payroll taxes, overtime, bonuses, insurance, workers' compensation, benefits, equipment and operating overhead. For a realistic hourly cost, divide the fully loaded annual total by productive hours rather than paid hours, accounting for leave, training, administration and downtime.
A W-2 employee costs more than their stated wage because the employer also pays its share of payroll taxes, unemployment-related costs, workers' compensation and any company-provided benefits. Enter compensation and working hours, then customize the employer tax rate, insurance, benefits and overhead fields. The calculator returns the cost multiplier and fully loaded total for budgeting; it is not a payroll filing tool.
Yes. The calculator is free, requires no sign-up and processes the estimate in your browser. After entering your assumptions, click “Download calculation (.CSV)” to export compensation, employer taxes, benefits, total annual cost, true hourly cost and suggested billable rate. The CSV opens in Microsoft Excel, Google Sheets and most spreadsheet applications.