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    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.

    1. Cost per hire = £6,000 + £2,000 + £1,500 + £3,000 = £12,500
    2. Total for 5 hires = 5 × £12,500 = £62,500
    3. Plus 5 new salaries (£40,000 avg) = £200,000/year
    4. 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

    CategoryGoodAveragePoor
    Cost per hireBelow £5,000£5,000-10,000Above £15,000
    Time to hireBelow 30 days30-60 daysAbove 75 days

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