Small-business finance
Employee loaded hourly cost
Turn user-entered annual compensation and burdens into productive-hour cost.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
annual employer costs/productive annual hours.
Enter your own wages, benefits and burden amounts. No tax rate, payroll law or wage database is supplied. Productive hours exclude nonproductive paid time.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Annual employer compensation and burdens: One row per distinct annual employer compensation and burdens, on the stated row and period basis. Do not enter both components and their total.
- Cost amount (selected currency): Actual annual employer compensation/burden amounts; no statutory rate inferred.
- Annual productive person-hours (person-hours/year): Productive person-hours from timesheets after paid leave/nonproductive time.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Loaded cost per productive hour is $40.00 for the illustrative inputs below.
Example inputs
- Annual employer compensation and burdens
- Cost amount: $50,000.00
- Cost amount: $10,000.00
- Annual productive person-hours: 1,500.00 person-hours/year
- Loaded cost per productive hour
- $40.00
- Annual employer cost
- $60,000.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Turn user-entered annual compensation and burdens into productive-hour cost.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.