Inputs
Example Data Table
Sample workforce plan for a 12-month budget period. Use it as a starting point for your scenario.
| Role | Start HC | Hires | Annual Salary | Bonus % | Benefits % | Taxes % | Overhead / mo | One-time / hire |
|---|---|---|---|---|---|---|---|---|
| Software Engineer | 8 | 2 | $ 42,000 | 10 | 18 | 5 | $ 120 | $ 1,650 |
| Customer Support | 10 | 3 | $ 18,000 | 5 | 15 | 5 | $ 70 | $ 750 |
| HR Generalist | 2 | 0 | $ 24,000 | 5 | 18 | 5 | $ 90 | $ 0 |
Formula Used
The calculator uses prorated annual costs over your selected budget months.
How to Use This Calculator
- Set currency, budget months, salary adjustment, and contingency buffer.
- For each role, enter headcount, hires, salary, and rate assumptions.
- Include overhead, training, and one-time onboarding costs per hire.
- Click Calculate budget to see totals above the form.
- Review the breakdown and the highest-cost roles for optimization.
- Download CSV for spreadsheets or PDF for sharing.
Role-based inputs create finance-ready workforce assumptions
Role-based costing reduces budget variance when teams expand quickly. For each role, record starting headcount, planned hires for the period, and an annual attrition rate. The calculator estimates end headcount and uses an average headcount across the period, which is a practical proxy when month-by-month movements are unknown. Example: moving from 8 to 10 people over 12 months averages about 9 heads for recurring spend.
Average headcount converts hiring and attrition into spend
Base pay is calculated as average headcount × adjusted annual salary × (months/12). Percentage adders then estimate bonus, benefits, and payroll taxes in a consistent way across locations. Many plans model benefits at 12–25% and payroll-related taxes at 3–10%, depending on jurisdiction and plan design. A single salary adjustment lever can represent merit cycles, promotions, or market corrections.
Fully loaded cost stack separates recurring and one-time items
Workforce budgets are stronger when compensation is not the only line item. Overhead per employee per month can include software licenses, workspace, IT support, and shared services; values often range from 50–200 per person monthly in office-based setups. Training per employee per year budgets onboarding and skill development and scales with average headcount. One-time costs per hire—recruiting fees, equipment, and setup—are separated so hiring spikes do not inflate run-rate.
Scenario comparison highlights sensitivity to attrition and timing
Attrition changes both cost and capacity. A 12% annual attrition rate applied to a 6‑month plan reduces expected end headcount by roughly 6% of the starting-plus-hire population, lowering base pay but increasing backfill needs. Compare “hire early” versus “hire later” scenarios by changing planned hires and re-running. If hiring is seasonal, model separate quarters and sum results to approximate timing effects.
Governance metrics support approvals and operating cadence
Monthly burn rate and cost per average employee translate the model into operating metrics. Use these to align with department budgets, runway targets, and hiring gates. A contingency buffer converts a forecast into an approval-ready plan; common ranges are 3–10% for stable teams and 10–15% for high-growth environments. Export CSV for finance models and a PDF snapshot for leaders, then review the top cost-driver roles first for monthly reviews.
FAQs
1) What should I enter for annual salary?
Use the typical annual base salary for the role. If compensation varies, use a weighted average across levels or locations, then validate against your payroll or comp bands.
2) How does the calculator estimate attrition impact?
It applies a proportional attrition rate across the selected months. End headcount is reduced from (start + hires), then average headcount is used to prorate recurring costs.
3) Why are overhead and training separated from salary rates?
Overhead is monthly and often fixed per employee, while training is typically budgeted annually. Separating them avoids overstating run-rate when hiring spikes, and it improves comparisons across roles.
4) How do I model contractors or temporary staff?
Create a separate role for contractors and enter their annualized cost as salary. Put agency fees or setup charges in one-time per hire, and use overhead only if those workers consume tools or space.
5) What contingency percentage is reasonable?
Use 3–10% for stable teams and 10–15% for high-growth or uncertain hiring. Increase it if your benefits, taxes, or overhead rates are volatile or if hiring timing is unpredictable.
6) How do I use the outputs for approvals?
Review grand total, monthly burn, and the highest-cost roles. Export CSV for finance review, and share the PDF snapshot in leadership meetings to align on hiring pace and cost drivers.