Cost of an Employee Calculator
See what an employee really costs once taxes, benefits, overhead, and hiring are added to salary.
Carry these numbers into the AI ROI calculator and see what an agent would save.
What goes into the cost of an employee
Salary is the biggest piece, but not the only one. Employers also pay payroll taxes, benefits such as health insurance and retirement contributions, the equipment, software, and space the person uses, and the cost of hiring, onboarding, and replacing people who leave. This calculator adds all of them up and shows the total per year, per month, and per hour actually worked.
Worked example
With the defaults, a $50,000 salary plus $4,250 in payroll taxes, $6,000 in benefits, $4,000 in equipment and space, and $2,000 in hiring and turnover comes to $66,250 a year. That is $5,521 a month, about $33.80 for every hour worked after 15 paid days off, and 1.33 times the salary.
Compare it with the alternatives
The cost per hour worked is the fair number to hold up against a contractor, an agency, or software. If part of the role is repetitive, the AI ROI calculator shows how much of it an AI agent could take on and what that would save.
Frequently Asked Questions
How much does an employee cost on top of salary?
A common rule of thumb is 1.25 to 1.4 times salary, but the real number depends mostly on benefits. With this calculator’s defaults, a $50,000 salary costs about $66,250 a year, or 1.33 times salary.
What payroll taxes do employers pay?
In the US, employers pay 7.65% for Social Security and Medicare, plus federal unemployment tax (0.6% on the first $7,000 of wages after the usual credit) and state unemployment tax, which varies by state. The 8.5% default covers a typical total; adjust it for your state.
Why include hiring and turnover?
Recruiting, onboarding, and training cost money and time, and replacing someone who leaves means paying those costs again. Spreading them over a year shows what the role really costs to keep filled.
What is cost per hour worked?
The total yearly cost divided by the hours actually worked after paid days off. It is usually well above the hourly wage, and it is the fair number to compare against a contractor, an agency, or an AI agent.
Is my information stored?
No. The calculation runs in your browser, and nothing you enter is sent anywhere.
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See how much of this role an AI agent could take on, and what it would save.