See what it costs to bring a new hire to full productivity. Enter salary, ramp time, and day-one productivity to calculate lost output during the ramp, total ramp cost per hire, and annual cost at your hiring volume.
A working model with the structure in place
Enter the role’s annual salary, benefits load, months to full productivity, day-one productivity, and onboarding cost per hire. The workbook calculates average productivity during the ramp, monthly fully loaded cost, lost productivity per hire, and total ramp cost per hire, in dollars and as a percent of salary. The Annual and Scenario tab scales the cost to your hires per year and shows the savings from a shorter ramp or stronger day-one start. The one-page Summary brings together annual ramp cost, ramp cost per hire, and savings at your faster-ramp target. The Benchmark tab includes typical time to full productivity by role level from SHRM, Gallup, and the Bridge Group. The workbook opens on a worked example so you can follow the calculations before entering your own figures.
What the learning curve adds to your hiring costs
A new hire who takes six months to reach full output spends half the year building productivity while receiving full pay. Lost output during that learning curve is usually the largest part of the ramp cost. In the worked example, a $70,000 hire with a 30% benefits load starts at 25% output and reaches full productivity in five months. That represents about $14,200 in fully loaded pay for output not yet delivered. Add onboarding costs for training, tools setup, and manager time, and the Annual and Scenario tab shows the total across every hire you make in a year.
Built for
- An HR leader or finance partner calculating the ramp cost of a replacement, including lost output alongside the recruiting fee.
- A manager building a case for onboarding investment by comparing ramp length and cost before and after an improvement.
- An owner or operator planning how long a new hire will take to reach full productivity.
For the full cost of an employee departure, from exit through ramp, see the Cost of Turnover Calculator. To shorten the ramp through structured onboarding, explore the New Hire Onboarding 30-60-90 Kit.
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 includes 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, so you can duplicate the file to model a second role or test different ramp curves side by side. Your download link appears immediately after checkout, and the same link is emailed on your receipt.
How is lost output priced?
The calculation starts with monthly fully loaded cost: annual salary multiplied by one plus your benefits load, then divided by twelve. The workbook multiplies that amount by the ramp months and the share of output not yet delivered, using the average of day-one and full productivity. For a role-specific benefits load, the Employee Cost Calculator or the Labor Burden Rate Calculator can help you calculate one.
How accurate is the result?
Your ramp curve shapes the planning estimate. Time to full productivity depends on role complexity, the onboarding program, and the individual. Use your own experience to set the ramp months and day-one productivity. The workbook calculates the result from those inputs, so your own ramp times will give you a more useful estimate than the example figures.
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.
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
These are planning estimates based on your inputs, not legal advice. Set ramp months, day-one productivity, and benefits load based on your experience, then compare the result with the Benchmark tab.