Business & Work · FREE TO USE

Employee Cost

Estimate total compensation cost using your own assumptions.

01

Let’s work it out.

Start with the example, or make it your own.

Your planning allowance for employer taxes, insurance, and other percentage-based costs.

02EXAMPLE RESULT

Total annual employer cost

78,000
currency units
Monthly cost6,500currency units
Cost per paid hour37.5currency units/hour
Percentage-based employer costs12,000currency units
Fixed benefits6,000currency units

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THE THINKING BEHIND THE ANSWER

How this calculation works

Combine gross salary with your selected employer-cost allowance and fixed benefits. Use nonoverlapping inputs to avoid counting a benefit twice.

Annual cost = salary × (1 + employer-cost percentage) + fixed benefits

Your calculation, step by step

  1. Additional percentage-based cost = 60,000 × 20% = 12,000.
  2. Annual cost = 60,000 + 12,000 + 6,000 = 78,000.
A worked example

60,000 salary + 20% employer costs + 6,000 benefits = 78,000/year.

A few good places to start

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