Free online calculator

Employee hourly cost calculator

Enter salary, payroll costs, benefits and working hours to estimate the real cost of each hour worked.

How do you calculate an employee's hourly cost?

Salary alone does not show how much an hour of work really costs the business. Payroll costs, benefits and contracted hours also matter. Knowing this figure helps price services, compare contracts and understand whether a customer remains profitable.

Hourly cost = (salary + payroll costs + benefits) รท monthly hours

When to use this calculator

Use the estimate before sending a proposal, when reviewing a contract price or when comparing planned costs with your team's recorded hours. The result is a management estimate and may vary according to local taxes and employment rules.

Frequently asked questions

Questions about this calculation

What is included in hourly labor cost?

Salary, payroll-related costs, benefits and the monthly hours used for the employee's schedule.

Does this replace an accountant's calculation?

No. This is a management and pricing estimate. Validate tax and employment obligations with a qualified adviser.

Why track hours by customer?

Because a contract's real cost depends on the time the team spends on it. Attendio organizes these hours by employee and customer.