Starts are assumed evenly distributed over the hiring spread, after the start delay. Average start month is: avg_start = start_delay + (min(spread, period) / 2). Then: employed_months = max(0, period - avg_start).
Salary cost is prorated for the planning window: salary_cost = hires × avg_salary × (employed_months/12). Benefits and payroll taxes are applied to salary cost: benefits_cost = salary_cost × benefits_rate, tax_cost = salary_cost × payroll_tax_rate. Management overhead is applied to the subtotal: overhead = (salary_cost + benefits_cost + tax_cost) × mgmt_overhead.
One-time costs are per hire (recruiting, onboarding, equipment, relocation): one_time_total = hires × per_hire_cost. Monthly costs scale by employed months (office, software): monthly_total = hires × monthly_cost × employed_months.
Total expansion cost is the sum of all buckets. Productive FTE-months are estimated with a ramp period: eq_prod = hires × ((employed_months − ramp) + ramp × ramp_productivity). Then: cost_per_prod_month = total / eq_prod.
- Enter baseline hiring and compensation assumptions for your expansion plan.
- Set benefits, payroll taxes, and overhead to match your internal cost model.
- Add one-time costs per hire, plus monthly workspace and tooling costs.
- Use start delay and hiring spread to reflect realistic ramp timing.
- Tune scenario multipliers to model downside and upside cases.
- Click Calculate Scenarios, then export CSV or PDF for sharing.
Cost drivers that move fastest
Payroll is usually the largest lever, but unit costs around hiring often surprise teams. A $1,000 change in annual salary across 20 hires employed for 10 months adds about $16,667 in salary alone. After benefits, payroll taxes, and a 5% overhead, the same change can exceed $22,000. Recruiting, onboarding, equipment, and relocation scale linearly per hire, so validate per-hire assumptions with invoices.
Timing assumptions change burn rate
The planning period may be 12 months, yet starts rarely happen on day one. Start delay and hiring spread reduce average employed months, lowering payroll and monthly seat costs. If you delay starts by two months and spread hiring across six, the “average” hire works closer to seven months, not twelve. This is why monthly burn is an average: cash flow can be front‑loaded by one‑time costs even when payroll arrives later.
Ramp planning and productivity view
Cost per productive FTE‑month helps compare teams with different learning curves. The calculator treats ramp months as partially productive using the ramp productivity factor. For example, three ramp months at 50% equals 1.5 fully productive months. This view discourages over‑hiring into a manager bottleneck: total cost may look affordable, but productive capacity arrives later. Use it to pressure‑test training budgets and manager-to-IC ratios.
Scenario controls for stakeholder alignment
Conservative, baseline, and aggressive scenarios are governed by multipliers for hires, salary, one‑time costs, and monthly costs. This keeps the model consistent and easier to review than editing dozens of fields. Tie the conservative case to likely constraints (offer declines, slower approvals) and the aggressive case to known risks (premium talent, higher tooling). Record why each multiplier changed, so decisions remain auditable.
Turning results into a hiring budget
Use total cost to set the funding envelope, and monthly burn to stage approvals. Cost per hire is useful for comparing recruiting channels, while cost per productive month aligns with delivery milestones. If office costs are uncertain, run a remote-first scenario by lowering seat costs and increasing software. Reforecast each month with actual starts and spend, then export results to share with finance and leadership.
It estimates how long, on average, each new hire is on payroll within the planning window, based on start delay and hiring spread. It drives prorated salary, benefits, taxes, and monthly seat costs.
Three cases help you discuss risk and options: conservative for constraints, baseline for the plan, and aggressive for upside growth. Multipliers keep comparisons consistent across all cost buckets.
Use your latest payroll and finance benchmarks. Benefits are a percentage of salary, payroll taxes cover statutory employer costs, and overhead captures management and coordination load. Start with last quarter’s actuals, then adjust for policy changes.
Lower office cost per seat and consider higher software or stipends. If relocation decreases, reduce relocating hires or relocation cost. Run a second scenario to compare savings against productivity or retention tradeoffs.
It divides total cost by estimated productive months after ramp. This helps compare teams with different learning curves and ensures budget discussions reflect when capacity becomes useful, not just when hiring happens.
Yes. After calculating, download CSV for spreadsheet analysis or PDF for a one‑page summary. Attach exports to your budget memo and include the scenario multipliers so reviewers can trace assumptions.
| Example | Period (mo) | Baseline hires | Avg salary | Benefits | Office/mo | Software/mo | Baseline total (approx) |
|---|---|---|---|---|---|---|---|
| Team expansion, mixed roles | 12 | 20 | $60,000 | 22% | $250 | $90 | $1,750,000 |
| Fast growth with higher tool spend | 18 | 35 | $72,000 | 28% | $310 | $140 | $4,900,000 |
| Small satellite office pilot | 9 | 8 | $55,000 | 18% | $420 | $95 | $520,000 |