Employee Cost Breakdown Calculator
Calculate true cost of employment including NI, pension, training, equipment and recruitment.
Last updated: April 2026 · Source: HMRC — Rates and thresholds for employers 2025/26
Amortised over 3 years
True Annual Cost of Employment
£43,050.00
£165.58/day · £22.08/hour · 23% overhead
| Salary | £35,000.00 |
| Employer NI (15%) | £4,500.00 |
| Pension (3%) | £1,050.00 |
| Training | £500.00 |
| Equipment | £1,000.00 |
| Recruitment (amortised) | £1,000.00 |
| Total | £43,050.00 |
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
The full cost of an employee includes far more than their headline salary. Mandatory costs include employer National Insurance (15% above £5,000 for 2025/26), workplace pension (minimum 3% of qualifying earnings) and employer's liability insurance. These statutory requirements add approximately 18-20% on top of the gross salary.
Discretionary costs may include private medical insurance (averaging £1,000-£2,000 per employee), training and development budgets, equipment and IT costs, office space per head, recruitment costs (typically 15-25% of salary for agency hires) and any performance bonuses or profit-sharing schemes.
This calculator provides an itemised breakdown of all employer costs. Enter the salary and toggle each optional benefit to build a complete picture. The output shows both the per-employee cost and the cost as a percentage of salary, helping businesses budget accurately for headcount expansion.
Example: Full cost of a £45,000 employee
- Employer NI (15% above £5,000): £6,000
- Employer pension (5%): £2,250
- Private medical: £1,200
- Training budget: £1,500
- Equipment/IT: £2,000
- Total loaded cost: £57,950 (128.8% of salary)
Frequently Asked Questions
- What does the Employee Cost Breakdown Calculator do?
- Calculate true cost of employment including NI, pension, training, equipment and recruitment. All calculations are performed in your browser using official UK rates and thresholds.
- Is this suitable for my business?
- This calculator provides general estimates based on standard UK business rates and rules. Every business is different — consult your accountant for advice specific to your circumstances.
- Does this use 2025/26 tax rates?
- Yes. All rates and thresholds are based on the current 2025/26 UK tax year. Corporation Tax main rate is 25% for profits over £250,000, with a 19% small profits rate.