Share
    Share
    Free Tool

    Employee Cost
    Calculator

    Find out what an employee really costs, how many
    you can afford, and what a raise actually costs.

    Annual Salary
    $
    State
    Health Insurance (Annual)
    $
    Retirement Match
    %
    Ad Space

    True Employee Cost

    True employee cost is the total annual expense including salary, payroll taxes, and benefits.

    PAYROLL TAX
    FICA (7.65%) +
    SUTA (state rate)
    TRUE COST
    Salary + FICA + SUTA +
    Health + Retirement

    What Does an Employee Really Cost?

    The gap between salary and true cost surprises most first-time employers. A $60,000 salary becomes $75,000+ after payroll taxes, health insurance, and retirement contributions. That 25–40% markup is mandatory. FICA and unemployment taxes aren't optional. This calculator shows the real number so you can budget accurately before making an offer.

    Editor's Pick
    QuickBooks: Track employee costs automatically
    See the true cost of your team with automated payroll and expense tracking. Free trial.
    Try QuickBooks Free →
    Affiliate disclosure: We may earn a commission if you click and make a purchase, at no extra cost to you.

    State matters more than most business owners realize. An employee in California costs more than the same employee in Texas because of higher state unemployment tax rates. If you're hiring remotely and can choose where to base the position, this is worth understanding.

    Frequently Asked Questions

    More Free Business Tools

    Paycheck CalculatorSalary to Hourly Calculator

    We use cookies (Google Analytics) to understand how visitors use CalcTools so we can improve the experience. No personal data is sold. Privacy Policy