Add salary, benefits, and overheads to see what an employee really costs per year, month, and working hour.
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It is more than salary. Add benefits (insurance, gratuity, bonuses) and overheads (workspace, equipment, software) to get the fully loaded cost — often 1.2 to 1.4 times base salary.
Divide the total annual cost by actual working hours (working days × hours per day). This 'true hourly cost' is useful for pricing services and quoting projects.