Payroll Cost Calculator
Estimate the total cost of employing staff based on pay, hours, employer taxes, benefits and other payroll on-costs.
Overview
A payroll cost calculator helps you estimate the true cost of employing someone, not just their wage or salary. Enter annual salary or hourly pay, add employer tax rates, benefits and other on-costs, and the calculator will estimate both per-employee and total payroll costs.
How it works
The calculator first estimates each employee's gross annual pay. For salaried staff, it uses the annual salary entered. For hourly staff, it multiplies hourly rate by hours per week and weeks per year. It then adds employer taxes, annual benefits costs and any other payroll on-costs to estimate the full annual cost per employee. Finally, it multiplies that figure by the number of employees and shows an average monthly cost.
How to use this calculator
- 1Choose whether pay is based on an annual salary or an hourly rate.
- 2Enter the gross pay details for one employee.
- 3Add the employer tax rate you want to use.
- 4Enter annual benefits costs and any other payroll on-cost percentage.
- 5Set the number of employees with the same cost profile.
- 6Review the annual and monthly payroll cost estimates.
Example Calculation
Pay type
hourly
Annual salary
$50,000
Hourly rate
$25
Hours per week
40
Weeks per year
52
Employer tax rate
10%
Benefits cost per year
$3,000
Other on-costs rate
5%
Number of employees
3
Total annual payroll cost
$188,400
If an employee earns 25 per hour for 40 hours a week over 52 weeks, gross annual pay is about 52000. With 10% employer taxes, 3000 in annual benefits and 5% other on-costs, the cost per employee is about 62800, and the total payroll cost for 3 employees is about 188400 per year.
Frequently asked questions
What does this payroll cost calculator estimate?
It estimates the full employer cost of payroll by combining gross pay with employer taxes, benefits and other payroll-related on-costs.
Does this calculator include employee deductions?
No. It focuses on employer payroll cost, not net pay after employee deductions.
Can I use this for hourly employees?
Yes. Choose hourly pay and enter the hourly rate, hours per week and paid weeks per year.
Can I calculate payroll cost for more than one employee?
Yes. Enter the number of employees if they share the same pay and cost assumptions.
Are benefits included in the result?
Yes. Annual employer-paid benefits are added as a fixed yearly amount per employee.
Does this include bonuses or overtime?
Not automatically. If you want to include them, add them into the pay or on-cost assumptions you enter.
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Assumptions and warnings
Assumptions
- Results are estimates based on the pay and rates you enter.
- Employer taxes, benefits and other on-costs are applied using simple percentage or fixed annual amounts.
- The calculator assumes each employee has the same pay and cost profile when employee count is greater than one.
- Overtime, bonuses, commissions, unpaid leave and one-off hiring costs are not included unless built into your inputs.
Warnings
- This calculator provides an estimate only and is not financial, payroll or tax advice.
- Payroll rules, employer contributions and benefit costs vary by country, state and scheme.
- Check current payroll requirements and rates before making hiring or budgeting decisions.