Fully Loaded Employee Cost Calculator

Commonly 1.25 to 1.4 times salary once employer taxes, benefits, overhead and equipment are counted. This builds it from components because the multiplier varies enormously by country and by role.

The load on top of salary, expressed as a percentage or a multiplier. Confusingly it sometimes excludes overhead and sometimes includes it, so check what a quoted figure covers before comparing.

Because nobody works 2,080 hours. Removing leave, public holidays and absence typically leaves nearer 1,700 to 1,800, and using the larger denominator understates the hourly cost by around a fifth.

Typically by half or more, because both corrections apply at once. Salary divided by contracted hours is the number almost always used, and it is the number that is wrong.

No — it is a cost, not a price. A rate has to cover non-billable time, business overhead, risk and profit, which typically puts it at a substantial multiple of this figure.

Any build-versus-buy comparison, any meeting cost, any automation business case, and any decision about whether a task is worth a person's time. All of them are routinely made with the naive figure instead.

Workspace, utilities, insurance, software licences, administrative support and a share of management time. Six to fifteen thousand a year is a common range and it varies enormously with whether people work in an office.

It shifts it. Property cost falls and equipment, connectivity and stipend costs rise, and the net effect is usually a reduction rather than an elimination of overhead.

It is a separate calculation, and spreading it over expected tenure is a defensible way to include it. A costly hire who stays four years is a very different annual cost from one who stays one.

Enormously, mostly through mandatory employer contributions. Some jurisdictions add under 10% and others well over 30%, which is why the rate is an input rather than a built-in figure.

Well above this, because a contractor covers non-billable time, their own overhead, no paid leave, and the risk of gaps between engagements. Comparing a contractor's day rate to an employee's salary directly is the classic error.

Yes, and using salary instead is why so many build decisions look cheaper than they turn out to be. The hours are usually underestimated too, which compounds in the same direction.