Hiring Plan Calculator
Plan your hiring needs by forecasting headcount, recruitment costs, and onboarding timelines across departments and roles.
Last updated: March 2026
A hiring plan cost calculator projects what your team will cost in 12 months based on planned hires, start dates, and fully loaded costs. Multiply base salary by 1.25 to 1.4 to account for benefits, taxes, and overhead. Use this free tool to forecast your people spend accurately.
Total Annual Team Cost
$1.1M
Cost Increase
53.5%% increase
Recruitment Costs
$25,000
Fully Loaded Cost Per Employee
$73,167/yr
How You Compare
Your fully loaded employee cost is in the bottom 51% of tech companies.
Industry typical: $60,000-120,000
Source: Carta Total Compensation Report 2025
💡 What This Means
- 📊 A 53% increase in team costs is significant but common during growth phases. Make sure revenue growth supports this.
- 💰 Total annual team cost: $1,097,500 ($73,166.667/person fully loaded). Recruitment alone costs $25,000.
- 💡 Rule of thumb: each employee should generate 3-5x their fully loaded cost in revenue. At $73,166.667/person, target $292,666.667 in revenue per employee.
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What is Hiring Plan Cost?
Hiring plan cost calculates the total investment required to recruit, equip, and onboard new employees. Beyond salary, each hire incurs recruitment fees, equipment purchases, training costs, and a productivity ramp-up period. Accurate cost forecasting prevents budget overruns during growth phases. Budget recruitment with the Recruitment Cost Calculator and model the impact on your burn rate.
The Formula
Total Hiring Cost = Number of Hires × (Recruitment Cost per Hire + Equipment + Onboarding Training + First 90 Days Reduced Productivity)
Worked Example
5 new hires planned: £6,000 average recruitment cost, £2,000 equipment, £1,500 onboarding, £3,000 estimated productivity ramp cost per person.
- Cost per hire = £6,000 + £2,000 + £1,500 + £3,000 = £12,500
- Total for 5 hires = 5 × £12,500 = £62,500
- Plus 5 new salaries (£40,000 avg) = £200,000/year
- First-year total cost = £62,500 + £200,000 = £262,500
📌 Hiring 5 people costs £62,500 upfront before any salary — £12,500 per hire. The true first-year cost is £262,500, not the £200,000 salary budget alone.
Why This Matters
Budget accuracy
Startups frequently budget only for salaries when planning hiring. The £12,500 per-hire overhead means a plan to hire 10 people needs an extra £125,000 beyond salaries — a material amount that can shorten runway by 2-3 months.
Timing decisions
Understanding the full cost per hire helps decide between hiring 5 people in Q1 (£62,500 immediate outlay) vs 2 in Q1 and 3 in Q3 (spreading the cash impact). Staggered hiring is often smarter for cash management.
Common Mistakes
❌ Forgetting the productivity ramp
New hires aren't fully productive for 3-6 months. A developer hired at £50K salary produces roughly £25K of value in their first 6 months while consuming full salary. This "ramp cost" is real and should be budgeted.
❌ Not accounting for failed hires
Not every hire works out. Industry data suggests 15-20% of new hires leave or are let go within 12 months. Factor a 15% "miss rate" into hiring plans — plan to hire 6 to end up with 5.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| Cost per hire | Below £5,000 | £5,000-10,000 | Above £15,000 |
| Time to hire | Below 30 days | 30-60 days | Above 75 days |
Related Tools
Recruitment Cost Calculator
Calculate the true cost of hiring including job ads, recruiter fees, interview time, and onboarding. Compare cost per hire against industry benchmarks.
Use free →HR & OperationsEmployee Turnover Cost Calculator
Calculate the true cost of employee turnover including recruitment, onboarding, lost productivity, and knowledge drain per departure.
Use free →Frequently Asked Questions
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