Inputs
Add one or more employees. Use the assumptions panel for benefits, overhead, coverage, and admin effort.
Example Data Table
Use these sample values to validate your setup.
| Employee | Pay Type | Hourly / Salary | Time Off | Paid % | Benefits % | Overhead % | Coverage | Premium % | Productivity Loss % |
|---|---|---|---|---|---|---|---|---|---|
| Ayesha | Hourly | USD 28/hr | 16 hours | 100 | 20 | 10 | Overtime | 50 | 10 |
| Hassan | Salary | USD 72,000/year | 2 days | 100 | 25 | 12 | Temp | 35 | 0 |
Formula Used
HourlyRate = HourlyRateInput (hourly pay)HourlyRate = AnnualSalary / (52 × HoursPerWeek) (salary pay)TimeHours = Hours or Days × HoursPerDayDirectWage = HourlyRate × TimeHours × (Paid% ÷ 100)Benefits = DirectWage × (Benefits% ÷ 100)Overhead = DirectWage × (Overhead% ÷ 100)Replacement = (HourlyRate × TimeHours × CoverageRatio%) × (1 + Premium%)Productivity = (HourlyRate × TimeHours) × (ProductivityLoss% ÷ 100)AdminTotal = FixedAdmin + HRHours×HRRate + MgrHours×MgrRateAdminPerEmployee = AdminTotal ÷ EmployeeRowsTotalCost = DirectWage + Benefits + Overhead + Replacement + Productivity + AdminPerEmployeeHow to Use This Calculator
- Add employee rows and enter time off in hours or days.
- Select pay type and provide hourly rate or annual salary.
- Set Paid % to model paid, unpaid, or partially paid leave.
- Adjust benefits and overhead rates to match your policy.
- Choose coverage type, ratio, and premium to model backfill.
- Optionally add productivity loss and admin effort for realism.
- Click Calculate to see results above the form.
- Use Download CSV or Download PDF for reporting.
Why time off costs vary
Time off cost is rarely just wages. Paid percentage, benefit load, and overhead rates change the fully loaded impact. Two employees taking 16 hours can produce different totals when one has higher benefits, higher overhead, or partial pay. This calculator separates direct pay from coverage and productivity effects, so you can explain variance instead of averaging it away across teams.
Inputs that drive accuracy
Start with the best hourly rate you can defend. For salaried roles, converting annual salary into an hourly rate using 52 weeks and stated weekly hours keeps comparisons consistent across teams. Enter time off in hours or days; the workday setting translates days into hours for cleaner reporting. Benefits and overhead percentages should reflect your finance policy, not a generic benchmark, and may differ for contractors.
Coverage and premium modeling
Coverage is the operational cost of keeping work moving. Use coverage ratio to estimate how much of the absent workload is actually replaced, and apply a premium to represent overtime uplift, agency fees, shift differentials, or ramp time for temporary staff. For example, 100% coverage with a 50% premium means replacement labor costs 1.5× the base wage for those hours. Choose “None” when work can wait without service risk.
Interpreting results for decisions
Use the summary to compare scenarios: paid leave versus unpaid leave, overtime versus temporary coverage, or different productivity loss assumptions. Productivity loss is an opportunity cost, useful for revenue roles, customer support backlogs, and time‑sensitive projects. If productivity loss is set to 10%, the model adds 0.10× hourly rate × time off hours, highlighting delivery risks and missed throughput that wage-only views miss. Use the per‑employee table to spot outliers.
Governance and reporting workflow
Admin costs capture time spent on approvals, scheduling, and handoffs. Enter HR and manager time with their hourly rates to quantify process friction; the tool allocates this evenly across entered employees for transparency. Export CSV for payroll reconciliation, finance partnering, or analytics, and PDF for leadership updates. Over time, track typical benefit loads, coverage premiums, and admin effort by team to improve forecast accuracy, refine leave policies, and set staffing buffers during peak periods.
FAQs
What does the grand total include?
Grand total sums paid wages, benefits, overhead, coverage replacement, productivity loss, and allocated admin costs for all entered employees. It reflects a blended operational view, not a payroll-only figure.
How is a salary converted to an hourly rate?
The tool divides annual salary by 52 weeks and your stated hours per week. This yields a comparable hourly rate for costing time off hours, coverage, and productivity assumptions.
When should I set Paid % below 100?
Use Paid % to model unpaid leave, partial pay, or top‑ups. Set 0 for fully unpaid time, 50 for half‑pay, or any policy percentage you apply during absence.
How do benefits and overhead get applied?
Benefits and overhead percentages are applied to paid wages only, creating a fully loaded paid-leave cost. If your policy loads costs differently, adjust these rates to match your finance treatment.
What is coverage ratio and premium?
Coverage ratio estimates what share of absent work is replaced. Premium represents the uplift for overtime, agency fees, or inefficiency. Together they approximate replacement labor cost when work must continue.
How are admin costs allocated across employees?
Fixed admin cost plus HR and manager time are totaled, then split evenly across the employee rows you entered. This keeps reporting simple and avoids hiding process effort inside wage assumptions.