Employee Cost Calculator

Know the full cost of an employee before making a hiring or budgeting decision. This Excel workbook combines salary, payroll taxes, benefits, workers compensation, paid time off, and overhead. It calculates the fully loaded annual cost, the cost per month, and the effective hourly cost.

Start with a worked example

Enter base pay or an hourly wage and scheduled hours. Add bonus, benefit costs, a retirement match, workers compensation, payroll, and overhead. The workbook calculates the fully loaded annual cost, the multiple of pay, the cost per month, and the effective hourly cost, with a breakdown of where the money goes. Employer Social Security to the 2026 wage base, Medicare, and FUTA are applied automatically. You set your state SUTA rate, workers compensation, and benefit costs. The workbook opens with a filled-in example so you can follow the calculation before entering your own figures. An optional section adds one-time recruiting, onboarding, and equipment costs to show the first-year total separately from ongoing costs.

Built for

• Business owners and HR leads calculating the full employment cost before approving a hire.
• Consultants and fractional HR leads preparing budgets or setting bill rates they can explain to clients.
• Anyone setting a contractor or staffing bill rate who has to know the loaded cost underneath it.

To calculate the cost of an employee leaving, use the Cost of Turnover Calculator. For headcount planning based on demand, see the FTE Headcount Planner and the Workforce Planning Pack.

Before you buy

What format is it, and can I edit it?

You get one Excel workbook that also works in Google Sheets. The download is five files: the workbook, a Start Here, the one-page Quick Reference, the product license, and a short guide to using it in Google Sheets. Every input and formula is editable, and you can reuse the file for as many roles as you like. Your download link is available immediately after checkout, with the same link emailed on your receipt.

What does the workbook offer beyond the free calculator?

Set your benefit, tax, and workers compensation assumptions once and reuse the workbook for each role. Duplicate the sheet to compare roles side by side or use the figures directly in your budget. Every formula is open for you to review and adjust. The free web calculator provides a one-time estimate. The paid workbook gives you an editable file for ongoing planning.

What is the refund policy?

Digital products are covered by a 30-day money-back guarantee. To request a refund, email support@truestephr.com or reply to your receipt within 30 days of purchase. Questions? Email support@truestephr.com.

These are planning estimates, not legal or tax advice. Federal figures use 2026 rates. State and benefit costs vary, so enter your own figures and confirm specifics with a qualified professional.

How the download works

Your files arrive as a single ZIP download, best opened on a computer. Save it, extract it (right-click and select Extract All on Windows, or double-click on a Mac), then open the Start Here file first. PDFs open in any reader, and editable files work in Microsoft Excel or free equivalents, including LibreOffice and Google Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.

Scope

This planning and analysis model produces estimates based entirely on the inputs and assumptions you enter. Use those estimates to support decisions, rather than as accounting, tax, or legal conclusions. Check the assumptions against your own data. Have qualified counsel review decisions involving pay, headcount, or separation against applicable law before acting. General information, not legal, tax, or financial advice.