{
  "slug": "employee-true-cost",
  "title": "True Cost of an Employee Calculator",
  "heading": "True Cost of an Employee Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/employee-true-cost",
  "summary": "Fully loaded cost beyond base salary.",
  "description": "Salary is roughly 70% of what an employee actually costs. Payroll taxes, benefits, equipment, and software make up the rest.",
  "formula": "Total = salary + payroll tax + benefits + overhead",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=employee-true-cost",
  "inputs": [
    {
      "id": "salary",
      "label": "Base salary",
      "kind": "number",
      "hint": null,
      "default": 85000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "tax",
      "label": "Employer payroll tax",
      "kind": "number",
      "hint": null,
      "default": 9,
      "unit": "%",
      "min": 0,
      "max": 30
    },
    {
      "id": "benefits",
      "label": "Benefits",
      "kind": "number",
      "hint": null,
      "default": 12000,
      "unit": "$/yr",
      "min": 0,
      "max": null
    },
    {
      "id": "equipment",
      "label": "Equipment + software",
      "kind": "number",
      "hint": null,
      "default": 3000,
      "unit": "$/yr",
      "min": 0,
      "max": null
    },
    {
      "id": "space",
      "label": "Space + overhead",
      "kind": "number",
      "hint": null,
      "default": 4000,
      "unit": "$/yr",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "total",
      "label": "Fully loaded annual cost",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "multiplier",
      "label": "Cost multiplier vs salary (×)",
      "format": "decimal",
      "hint": null,
      "primary": false
    },
    {
      "id": "hourly",
      "label": "Effective hourly cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthly",
      "label": "Monthly cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "overhead",
      "label": "Cost above salary",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Base salary: 85000 $",
      "Employer payroll tax: 9 %",
      "Benefits: 12000 $/yr",
      "Equipment + software: 3000 $/yr",
      "Space + overhead: 4000 $/yr"
    ],
    "outputs": [
      "Fully loaded annual cost: $111,650",
      "Cost multiplier vs salary (×): 1.31",
      "Effective hourly cost: $53.68",
      "Monthly cost: $9,304",
      "Cost above salary: $26,650"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter base salary ($).",
      "Enter employer payroll tax (%).",
      "Enter benefits ($/yr).",
      "Enter equipment + software ($/yr).",
      "Enter space + overhead ($/yr).",
      "Read your fully loaded annual cost on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "salary": 51000,
        "tax": 5.3999999999999995,
        "benefits": 7000,
        "equipment": 1750,
        "space": 2500
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "salary": 85000,
        "tax": 9,
        "benefits": 12000,
        "equipment": 3000,
        "space": 4000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "salary": 136000,
        "tax": 14.4,
        "benefits": 19000,
        "equipment": 4750,
        "space": 6500
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the true cost of an employee calculator work?",
      "a": "Salary is roughly 70% of what an employee actually costs. Payroll taxes, benefits, equipment, and software make up the rest. The underlying maths is: Total = salary + payroll tax + benefits + overhead"
    },
    {
      "q": "What do I need to enter?",
      "a": "5 values: base salary, employer payroll tax, benefits, equipment + software, and space + overhead. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the fully loaded annual cost result mean?",
      "a": "It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — True Cost of an Employee Calculator (https://www.revenuelab.fyi/toolbox/employee-true-cost)"
}