United Kingdom version
How it works
Build a transparent annual employer-cost budget without substituting the employee withholding rate for employer contributions.
This is the United Kingdom planning view, with monetary inputs and outputs in GBP. A currency label does not establish that a tax rate, construction price, coverage rule or legal limit has been verified locally. The inputs and limitations below describe the actual scope.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
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?salary=Annual gross cash compensationMoney · Required · Default: 60,000
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?employerPayroll=Verified applicable employer payroll taxesMoney · Required · Default: 0
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?benefits=Annual employer-paid benefitsMoney · Required · Default: 8,000
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?pension=Employer retirement/pension contributionMoney · Required · Default: 3,000
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?equipment=Annual equipment/software allowanceMoney · Required · Default: 2,000
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?hiring=Recruitment/onboarding costMoney · Required · Default: 6,000
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?expectedTenure=Years over which hiring cost is allocatedNumber · Required · Default: 3
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?overhead=Other attributable annual overheadMoney · Required · Default: 3,000
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?productiveHours=Expected productive hours per yearNumber · Required · Default: 1,600
Outputs
3-
annualCostModeled annual employer costCurrency · Primary output · Currency: GBP
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costPerHourCost per productive hourCurrency · Currency: GBP
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burdenPercentNon-salary cost as a percentage of salaryNumber
Formula
annual cost = compensation + employer payroll + benefits + pension + equipment + hiring cost/tenure + other overhead.
Calculations retain numeric precision internally. Displayed values are rounded for readability. Quantities that must be purchased as whole units are rounded up only where the formula explicitly requires it.
Read the inputs before calculating
- Annual gross cash compensation: Enter the quantity described by the label.
- Verified applicable employer payroll taxes: Enter the quantity described by the label.
- Annual employer-paid benefits: Enter the quantity described by the label.
- Employer retirement/pension contribution: Enter the quantity described by the label.
- Annual equipment/software allowance: Enter the quantity described by the label.
- Recruitment/onboarding cost: Enter the quantity described by the label.
- Years over which hiring cost is allocated: Enter the quantity described by the label.
- Other attributable annual overhead: Enter the quantity described by the label.
- Expected productive hours per year: Enter the quantity described by the label.
Reproducible worked example
The following is a fictional arithmetic example, not a local quote, a verified claimant or a market forecast. Its values are included so the formula can be checked. The form does not automatically confirm any verification checkbox.
| Input | Example value |
|---|---|
| Annual gross cash compensation | 60,000 |
| Verified applicable employer payroll taxes | 0 |
| Annual employer-paid benefits | 8,000 |
| Employer retirement/pension contribution | 3,000 |
| Annual equipment/software allowance | 2,000 |
| Recruitment/onboarding cost | 6,000 |
| Years over which hiring cost is allocated | 3 |
| Other attributable annual overhead | 3,000 |
| Expected productive hours per year | 1,600 |
| Output | Calculated result |
|---|---|
| Modeled annual employer cost | GBP 78,000 |
| Cost per productive hour | GBP 48.75 |
| Non-salary cost as a percentage of salary | 30 |
Interpreting a changed assumption
Start with one complete scenario and change only one input when diagnosing a difference. Recheck units, the period of every rate, whether an amount is recurring or one-off, and whether a cost is already included elsewhere. A larger calculated benefit is not evidence that an assumption is more likely to occur.
Limitations
- Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
- Employer contribution caps, leave, insurance and employment obligations require verified jurisdiction rules. Productive hours must already exclude paid nonproductive time to avoid hiding its cost.
Frequently asked questions
What does this True Employee Cost result represent?
Build a transparent annual employer-cost budget without substituting the employee withholding rate for employer contributions. It applies the displayed formula to your inputs; it does not infer omitted facts.
Are the starting amounts verified United Kingdom prices or legal rules?
No. Numeric defaults are illustrative unless an input or dated reference explicitly identifies a researched component. Currency is GBP; local quotes, eligibility and unsupported rules must be entered and verified separately.
What must I check before relying on the result?
Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
Can I compare or share different assumptions?
Change one assumption at a time and use the browser-local project or share controls. A shared URL contains the encoded input values; do not include information you do not wish to disclose.
Sources and reference scope
- CFPB loan-estimate explanation — retrieved 2026-09-24. US cost components; the general amortization formula is stated separately.
- NIST unit conversion guidance — retrieved 2026-09-24. Unit definitions; geometry and financial arithmetic in these worksheets are explicitly stated.
These references support only their stated scope. They are not evidence that every local rule or price needed by the master expansion has been loaded.