Calculator Inputs
This page keeps a single-column page flow. Only the input area shifts to three, two, or one columns by screen size.
Example Data Table
Use this sample scenario to understand how the calculator combines merit, promotion, equity, employer cost, savings, and contingency.
| Example Metric | Example Value | Explanation |
|---|---|---|
| Employee count | 50 | Total employees included in the plan. |
| Average salary | USD 60,000.00 | Average current annual salary per employee. |
| Base payroll | USD 3,000,000.00 | Calculated from employee count × average salary. |
| Merit budget | USD 120,000.00 | Annual payroll × 4.00% merit rate. |
| Market adjustment budget | USD 45,000.00 | Annual payroll × 1.50% market rate. |
| Promotion budget | USD 24,000.00 | Five promoted employees with an 8.00% increase. |
| Equity adjustment budget | USD 10,000.00 | Five employees × USD 2,000.00 each. |
| Employer on-cost | USD 23,880.00 | Direct increase pool × 12.00%. |
| Attrition savings | USD 1,990.00 | Direct increase pool × 1.00% savings assumption. |
| Contingency amount | USD 6,626.70 | Applied after on-cost and savings adjustment. |
| Net budget required | USD 227,516.70 | Total planned raise budget for the cycle. |
Formula Used
1) Base Payroll
Base Payroll = Current Payroll Override if entered. Otherwise, Base Payroll = Employee Count × Average Salary.
2) Merit and Market Budgets
Merit Budget = Base Payroll × Merit Increase %
Market Adjustment Budget = Base Payroll × Market Adjustment %
3) Promotion Budget
Promoted Employees = Employee Count × Promotion Eligible %
Promotion Budget = Per Employee Base Salary × Promoted Employees × Promotion Increase %
4) Equity Adjustment Budget
Equity Adjustment Budget = Equity Adjustment Employee Count × Equity Adjustment Amount
5) Direct Increase Pool
Direct Increase Pool = Merit Budget + Market Budget + Promotion Budget + Equity Adjustment Budget
6) Employer Costs, Savings, and Contingency
Employer On-Cost = Direct Increase Pool × Employer On-Cost %
Attrition Savings = Direct Increase Pool × Attrition Savings %
Pre-Contingency Budget = Direct Increase Pool + Employer On-Cost − Attrition Savings
Contingency Amount = Pre-Contingency Budget × Contingency %
7) Final Budget
Net Budget Required = Pre-Contingency Budget + Contingency Amount
Monthly Impact = Net Budget Required ÷ 12
How to Use This Calculator
- Enter your currency code, employee count, and average salary.
- Add a payroll override only when you already know the current annual payroll.
- Enter your expected merit, market, and promotion percentages.
- Add targeted equity adjustments by employee count and amount.
- Include employer on-costs such as taxes, benefits, or statutory charges.
- Estimate attrition savings if open positions or turnover reduce budget pressure.
- Add a contingency percentage for buffer planning.
- Click Calculate Budget to show the results above the form, then export them as CSV or PDF.
FAQs
1) What does this calculator estimate?
It estimates the full salary increase budget for a planning cycle. That includes merit raises, market adjustments, promotion increases, equity adjustments, employer on-costs, savings assumptions, and contingency.
2) When should I use the payroll override?
Use the payroll override when you already know your annual payroll and do not want the calculator to estimate payroll from employee count and average salary.
3) Does the tool support targeted equity increases?
Yes. You can enter how many employees will receive equity adjustments and the flat amount assigned to each of those employees.
4) What are employer on-costs?
Employer on-costs are extra costs tied to pay changes. Examples include payroll taxes, benefits loading, insurance, retirement contributions, and other statutory employer expenses.
5) Why is attrition savings subtracted?
Attrition savings can reduce the required budget if turnover, vacancies, or delayed backfills offset part of the increase pool during the planning period.
6) Why add a contingency percentage?
Contingency creates a buffer for exceptions, final calibration changes, new hires, or leadership adjustments that often appear after initial compensation planning is complete.
7) Is the average raise percent the same as total budget percent?
No. Average direct raise percent measures the salary increase pool against base payroll. Total budget can be higher after employer on-costs and contingency are added.
8) Can I download the results?
Yes. After calculation, use the CSV or PDF buttons to download the current scenario, including inputs, summary metrics, and the line-item breakdown.