Quick answer
Annual payroll cost = employees × average salary × (1 + burden rate). 25 employees at $55,000 with a 28% burden cost $1,760,000 a year, or $146,666.67 a month.
Enter the headcount, average salary and the burden percentage for taxes and benefits. The calculator returns annual and monthly payroll cost.
Related tools: Meeting Cost Calculator: Cost of a meeting from attendees and hourly cost. Monthly Working Days Calculator: Weekdays in a month less holidays you enter. Utilization Rate Calculator: Billable hours as a share of available hours.
How to use the Payroll Cost Calculator
- Enter employees (above 0).
- Enter average annual salary ($) (above 0).
- Enter taxes and benefits on top of salary (%) (between 0 and 200).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Employees | A number | > 0 |
| Average annual salary | A number, in $ | > 0 |
| Taxes and benefits on top of salary | A number, in % | ≥ 0, ≤ 200 |
Formula and method
Formula
total = employees × salary × (1 + burden)
IEEE-754 double precision; shown to the decimals indicated.
The burden rate depends on your location and benefits, so you enter it.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Employees = 25; Average annual salary = 55000; Taxes and benefits on top of salary = 28.
| Result | Value |
|---|---|
| Annual payroll cost | $1,760,000.00 |
| Per month | $146,666.67 |
Example 2
Inputs: Employees = 4; Average annual salary = 120000; Taxes and benefits on top of salary = 20.
| Result | Value |
|---|---|
| Annual payroll cost | $576,000.00 |
| Per month | $48,000.00 |
The first line is the headline result (annual payroll cost). Below it the payroll Cost Calculator lists per month, which describe the same case from other angles. IEEE-754 double precision; shown to the decimals indicated.
What burden covers
Employer taxes, health insurance, retirement contributions and paid leave add to salary. A 28% burden turns a $55,000 salary into $70,400 of total cost. Typical burden rates range roughly from 20 to 40%.
An estimate
The burden rate is your own estimate and an average salary hides differences between roles. Recruiting, equipment, and training are not included. Use your payroll records for exact figures.
How the result changes with employees
Holding every other input at the first worked example, this table changes only employees. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Employees | Annual payroll cost | Per month |
|---|---|---|
| 12.5 | $880,000.00 | $73,333.33 |
| 25 | $1,760,000.00 | $146,666.67 |
| 50 | $3,520,000.00 | $293,333.33 |
| 100 | $7,040,000.00 | $586,666.67 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Employees: entering "0" shows "Employees must be greater than 0." beside that field and no result.
- Taxes and benefits on top of salary: entering "-1" shows "Taxes and benefits on top of salary must be at least 0." beside that field and no result.
Choosing between the Payroll Cost Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Meeting Cost Calculator](/business/meeting-cost-calculator/) | attendees, average cost per person per hour and duration | Meeting cost |
| [Monthly Working Days Calculator](/business/monthly-working-days-calculator/) | year and month | Working days |
| [Utilization Rate Calculator](/business/utilization-rate-calculator/) | billable hours and available hours | Utilization rate |
| [Marginal Cost Calculator](/business/marginal-cost/) | total cost before, total cost after and quantity before | Marginal cost |
| [Opportunity Cost Calculator](/business/opportunity-cost/) | return of the option you gave up and return of the option you chose | Opportunity cost |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Burden is your own estimate
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for employees and taxes and benefits on top of salary to confirm this.
Frequently asked questions
What is a fully loaded cost?
Salary plus all employer-paid taxes and benefits.
Does it include bonuses?
Only if included in the average salary.
How do I find my burden rate?
Divide total benefits and employer taxes by total salaries.
What does the Payroll Cost Calculator calculate?
Total payroll cost with a payroll burden you enter. It returns Annual payroll cost and Per month.
What formula does the Payroll Cost Calculator use?
total = employees × salary × (1 + burden). The burden rate depends on your location and benefits, so you enter it.
What do I need to enter in the payroll Cost Calculator?
You enter Employees, Average annual salary ($) and Taxes and benefits on top of salary (%).
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. Burden is your own estimate.
What is an example of a payroll Cost result?
With employees 25, average annual salary 55000 and taxes and benefits on top of salary 28, the annual payroll cost is $1,760,000.00.
Related calculators
- Meeting Cost Calculator — Cost of a meeting from attendees and hourly cost.
- Monthly Working Days Calculator — Weekdays in a month less holidays you enter.
- Utilization Rate Calculator — Billable hours as a share of available hours.
- Marginal Cost Calculator — Extra cost of producing additional units.
- Opportunity Cost Calculator — Value given up by choosing one option over another.
- Cost of Goods Sold Calculator — COGS from inventory and purchases.
Sources
- OpenStax, Principles of Accounting, Volume 2: Managerial Accounting (Rice University)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.