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.
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.