Estimate the full annual employer cost of a compensation band, not just base payroll. Enter band headcount, average base salary, employer burden as a percentage of salary, average annual incentive, and fixed per-employee costs. The calculator separates base payroll from add-on costs and reports an average cost per employee. Use weighted averages when salaries vary meaningfully inside the band, and include only costs that belong to the same annual planning period.
Annual cost = Headcount × [Salary × (1 + Burden rate) + Incentive + Other fixed cost]
The estimate shows the annual employer cost assigned to the band under a steady headcount assumption. The per-employee figure supports hiring and budget comparisons.
The burden rate is user defined. Confirm whether it includes payroll taxes, benefits, leave, and retirement contributions before comparing scenarios.
For 50 employees at $85,000 salary, 28% burden, $7,000 incentive, and $3,000 other cost, annual band cost is $5,940,000, or $118,800 per employee.
No. In this calculator it applies only to base salary; enter other incentive-related employer costs separately if needed.
Yes for a planning scenario, but actual average salary gives a more faithful current-cost estimate.
Use expected average filled headcount for the year, or model vacancies in a separate scenario.
Only if you enter them in other annual cost per employee. Recurring band cost is usually clearer without one-time recruiting expense.
The input allows unusual accounting allocations, but most users should enter their documented employer-cost rate.
| Variable | Meaning |
|---|---|
| Average base salary | Annual salary before burden and incentives |
| Burden rate | Employer costs calculated as a share of salary |
| Annual incentive | Expected bonus or commission per employee |
| Other fixed cost | Recurring annual amount per employee |