How the hiring cost calculator works
This free hiring cost calculator shows what a new hire actually costs a startup. Beyond base salary it adds payroll taxes and benefits, equipment and software, recruiting, and per-employee overhead to give you the fully loaded annual cost, monthly cost, and first-year total. No signup required, and results are shareable via URL.
Founders who budget headcount off base salary alone systematically under-plan burn. The fully loaded number - typically 1.25-1.4x base salary once everything is counted - is what belongs in your runway model, not the number on the offer letter.
The formulas
Loaded cost = salary + (salary x benefits %) + equipment + (monthly overhead x 12)
Everything it takes to keep the person productive for a year, excluding one-time costs.
First-year total = loaded annual cost + one-time recruiting cost
What the hire actually does to your first-year burn.
Benchmarks founders should know
- Fully loaded multiplier: 1.25-1.4x base salary - the standard planning rule of thumb
- US payroll taxes + benefits: typically 20-30% of salary for startups
- Agency recruiting fees: 15-25% of first-year salary - in-house or referral hiring is far cheaper
- Ramp time: 3+ months before full productivity - not included in the math, but budget for it
Frequently asked questions
How much does an employee really cost beyond salary?
Typically 1.25-1.4x base salary once payroll taxes, benefits, equipment, and per-employee overhead are included. A $120,000 hire usually costs $150,000-$168,000 per year fully loaded, before one-time recruiting costs.
What is fully loaded cost?
Fully loaded cost is the total annual cost of employing someone: base salary plus payroll taxes, benefits, equipment and software, and per-employee overhead like office space and insurance. It is the real number a hire adds to your burn rate.
What should a startup budget per hire?
Budget the fully loaded annual cost plus one-time recruiting cost, and use that number in your runway model - not base salary. Base salary alone systematically understates what a hire does to your burn.
Does this calculator include equity?
No. Stock compensation is dilution, not cash burn, so it does not belong in a hiring cost or runway model. Model equity grants separately with the dilution simulator at /calculators/dilution.
Is this hiring cost calculator free?
Yes. The Accelerator.tools hiring cost calculator is completely free, requires no signup, and results can be shared or embedded via URL.
Last updated July 2026 by the Accelerator.tools editorial team. Explore more free tools in the calculator library or browse the community-voted tool directory.