Can I afford this hire? Know before you post the job.
Turn a salary into the numbers that matter: the full cost of the role, the new revenue it has to bring in, and the cash it takes to carry it while it ramps up.
How this estimate works
The full cost of the role starts with wages and adds employer payroll taxes (Social Security, Medicare, federal and California unemployment, and the Employment Training Tax), workers' compensation, and any benefits you enter. These use the same rates as our payroll cost calculator.
Revenue needed is the monthly cost divided by your gross margin: the share of each sales dollar left after direct costs like materials and subcontractors. At a 40% margin, every $1 of cost needs $2.50 of new sales to break even.
Ramp-up is the number of months before the hire brings in, or frees up, enough revenue to pay for itself. The calculator multiplies the monthly cost by those months to show the cash you need on hand to get there, then compares it with your cash today.
Assumptions and limits
- Revenue needed is a break-even figure. It does not include profit, recruiting costs, equipment, or software for the new role.
- If the hire replaces work you pay for now (overtime, a contractor, or your own hours), the true added cost is lower. Subtract those savings from benefits to see the effect.
- Payroll taxes use the 2026 or 2027 rates noted on the payroll cost calculator. California UI and workers' comp vary by employer, so enter your own rates when you have them.
- Payroll rates verified October 29, 2026 against IRS, SSA, EDD, DIR, and Department of Labor sources.
An estimate is a starting point
Weighing a hire, a second location, or a big purchase? We model the decision with your real numbers before you commit. This calculator is educational and is not tax advice.
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