Hiring Freeze Runway Savings Calculator

Example data table

Formula used

How to use this calculator

1. Enter cash, monthly expenses, and any recurring revenue.
2. Set planned hires and the average fully loaded cost inputs.
3. Choose time-to-fill and the hiring freeze duration.
4. Pick an analysis horizon that matches your planning cycle.
5. Press Calculate savings, then export results for sharing.

Runway savings are timing, not cancellation

Runway savings from a hiring freeze come mostly from delaying start dates, not eliminating roles. Each delayed month avoids the loaded monthly cost per planned hire, and may push one-time recruiting and onboarding costs later. If 10 hires cost $9,200 loaded per month, a three-month delay prevents about $276,000 of payroll spending inside that window. The calculator separates payroll savings from one-time savings for clearer planning.

Translate dollars into months using net burn

Net burn converts savings into runway months leaders can compare across scenarios. Net burn is operating expenses minus recurring revenue, floored at zero to avoid misleading negative burn. If net burn is $400,000 per month and freeze-window savings are $600,000, the extension is 1.50 months. This translation helps explain how timing changes the cash runway.

Build a defensible fully loaded cost per hire

A credible result depends on realistic fully loaded cost inputs. Start with annual salary, then add benefits and employer payroll taxes as percentages of salary. Many organizations land near 15-25% for benefits and 7-10% for payroll taxes, but your structure may differ. Add monthly overhead per hire for software, seats, and support. The calculator rolls these into one loaded monthly figure.

Stress-test time-to-fill and freeze duration

Timing assumptions deserve the same rigor as cost assumptions. Time-to-fill drives when payroll begins without a freeze, and the freeze duration pushes that start month out. Create scenario bands for time-to-fill (for example 1.5, 2.5, and 3.5 months) and freeze length (for example 1, 3, and 6 months). Compare results over a 12-month horizon to see whether savings are early or shifted.

Use results to support a governance decision

Use the outputs to support a governance decision, not just a number. Identify roles that protect revenue, security, compliance, or critical operations and model exceptions by reducing planned hires or splitting scenarios. Pair freeze savings with approval gates and a restart trigger such as runway minimums or revenue milestones. Exporting a CSV or PDF enables consistent sharing with executives, managers, and board materials. Document assumptions so results stay consistent across leadership reviews.

FAQs

1) What counts as savings in a hiring freeze?

Savings are the costs you avoid inside the selected window because start dates move later. That includes delayed payroll (salary, benefits, taxes, overhead) and any one-time onboarding or recruiting costs that shift outside the window.

2) Why is net burn capped at zero?

If revenue meets or exceeds operating expenses, cash runway is not constrained by burn. Capping net burn at zero avoids showing negative runway and keeps the focus on timing differences created by the hiring pause.

3) How do I choose benefits and payroll tax rates?

Use your latest payroll reports or finance model to estimate employer-paid percentages of base salary. Enter blended rates that reflect your mix of geographies and plans so the loaded monthly cost aligns with actual cash outflow.

4) What if only certain roles are frozen?

Set planned hires to the roles affected by the pause, or run separate scenarios by team and combine the savings. This keeps exceptions visible and prevents critical hires from being unintentionally counted as delayed.

5) Does the calculator include productivity or revenue impact?

No. It models cash timing: when hiring costs start and how that changes runway. If hiring is tied to revenue delivery, evaluate the opportunity cost separately and present both views in the decision memo.

6) Which analysis horizon is best?

Pick a horizon that matches your planning rhythm, such as 6, 12, or 18 months. A longer horizon shows costs shifting later, while a shorter horizon emphasizes near-term runway protection.