Employee Cost Calculator (for Programmers)

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How much do senior-level software developers really cost? When you consider the hidden costs associated with hiring employees, outsourcing to a services firm becomes an attractive alternative — especially for projects that are outside your company's core competence.

The calculator below is divided into two sections. Use the first section to calculate the total expenses for each employee you hire. Use the second section to calculate the employee's effective hourly rate based on typical utilization.

We have provided typical values as defaults. The totals will automatically refresh when you enter your own estimates.

1. Employee Expenses

Salary & Benefits
Annual salary$
Bonus$
Burden ratio (payroll and benefits)%
Total cash compensation$

Recruiting
Placement fee (% of annual salary)%
Relocation Allowance$
Expected term of employmentyears
Annualized Recruiting Costs$

Hardware & Software
Annual allowance for hardware$
Annual allowance for software$
Total allowance for hardware and software$

Office Space
Usable spacesq. feet
Rentable factor%
Gross rentable space
sq. feet
Monthly lease$per sq. foot
Total annual office space expense$

Education & Training
Trade show attendance$
Training seminar attendance$
Allowance for technical books$
Total education and training$

Summary
Salary & Benefits$
Recruiting$
Hardware & Software$
Office Space$
Education & Training$

TOTAL EMPLOYEE EXPENSE$
per year

2. Utilization & Hourly Rate

Gross Hourshours

PTO (Paid Time Off)
Vacationhours
Holidays, Sick, Personalhours
Total PTO
hours

Gross work hours
hours

Overhead
Overhead%
Project downtime%
Total overhead & downtime
hours

Other Deductions
Trade show & training seminar attendancehours

Summary
Gross hours
hours
PTO
hours
Overhead & downtime
hours
Other deductions
hours

Total productive hours
hours

Hourly Rate Calculation
Total employee expense$
Total productive hours
hours

EFFECTIVE HOURLY RATE$
per hour

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