Price the true hourly cost of an employee with burden.
An employee genuinely costs salary plus benefits, payroll taxes and allocated overhead, and dividing that total by working hours reveals the true hourly rate. Pricing services below fully loaded hourly cost quietly subsidizes clients, so burdened rates are what quotes and budgets must be compared against.
Employee Cost per Hour
Hourly cost = salary x (1 + burden%) / hours
Hourly cost = salary x (1 + burden%) / hours An employee genuinely costs salary plus benefits, payroll taxes and allocated overhead, and dividing that total by working hours reveals the true hourly rate.
Pricing services below fully loaded hourly cost quietly subsidizes clients, so burdened rates are what quotes and budgets must be compared against.
This calculator takes 5 inputs: Annual salary, Benefits, Payroll taxes, Allocated overhead, Work hours per year. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.