Employee Cost per Hour Calculator
Calculate the hourly cost of an employee by factoring salary, benefits, and overhead and dividing by annual work hours.
Approximation only; adjust inputs for accurate results.
Examples
- $52,000 salary + $8,000 benefits + $7,000 overhead over 2,080 hours ⇒ $32.21 per hour
- $60,000 salary + $10,000 benefits + $9,000 overhead over 2,000 hours ⇒ $39.50 per hour
FAQ
What counts as overhead?
Overhead includes office space, equipment, and other indirect costs.
Why use annual hours?
Annual hours spread total costs across actual working time.
Can this help with pricing?
Yes, knowing true hourly cost aids in setting billing rates.
Does it include bonuses?
Include bonuses in the salary field if they are expected annually.
Additional Information
- Full-time work typically equals 2,080 hours per year.
- Include all employee-related expenses for a realistic hourly rate.