FreeByte

True cost of an employee

Add payroll taxes, benefits and overhead to a base salary to see what a hire really costs.

Built and reviewed by Dovanic, Founder and editor, FreeByteLast reviewed: 2026-08-18
$
8.0%
$
12%

True annual cost

$84,000

1.29× base salary

Monthly cost

$7,000

Salary
$65,000
Payroll taxes
$5,200
Benefits
$6,000
Overhead
$7,800
Cost per working hour
$45.65

Add payroll taxes, benefits and overhead to a base salary to see what a hire really costs.

How to read the results

Payroll tax and overhead are applied as percentages of salary, then benefits are added.

Methodology

Payroll tax and overhead are applied as percentages of salary, then benefits are added.

  • · Overhead allocation is an estimate
  • · No recruitment cost included

Estimates only. Nothing here is financial advice. Spotted something wrong? Tell us and it gets fixed.

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