Headcount Planning Calculator

Plan hiring against revenue targets by calculating required headcount from revenue per employee goals, and model the cost and timing of the hiring plan.

👥 People Ops📐 Required headcount = target revenue / target revenue per employee💼 Business
Target revenue
Target revenue per employee
Current headcount
Average fully loaded cost per hire
Expected annual attrition (%)
Average time to hire (weeks)
Please enter valid values.

Formula & Reference

VariableSymbolFormulaUnits
Headcount Planning CalculatorRequired headcount = target revenue / target revenue per employeeFTE

Step-by-Step Examples

Example 1
Growth Plan

Target revenue 12M, target RPE 180,000, current headcount 45, attrition 12%, cost per hire 110,000.

  • Required = 12,000,000 / 180,000 = 66.7 FTE
  • Net additions = 66.7 − 45 = 21.7
  • Backfills = 45 × 12% = 5.4
  • Gross hires = 27.1, rounded to 28
  • Incremental payroll = 21.7 × 110,000 = 2,387,000
✓ 28 gross hires, 2.39M incremental payroll
Example 2
Efficiency Target

Target revenue 10M, target RPE 250,000, current headcount 50, attrition 10%.

  • Required = 40 FTE
  • Net additions = 40 − 50 = −10
  • Backfills = 5
  • The RPE target implies reducing headcount while growing revenue
✓ No net hiring — efficiency-driven plan
Example 3
Backfill-Heavy

Target revenue 9M, RPE 150,000, current 58, attrition 25%.

  • Required = 60 FTE
  • Net additions = 2
  • Backfills = 58 × 25% = 14.5
  • Gross hires = 16.5 — mostly replacing leavers
✓ 17 hires, 14.5 just to stand still

Real-World Applications

Common Mistakes to Avoid

⚠️
Planning only net additions

Attrition backfills often exceed growth hires. A plan that budgets only for net additions will under-resource recruiting substantially.

⚠️
Using salary rather than loaded cost

Fully loaded cost typically runs 25 to 40% above base salary. Headcount budgets built on salary alone run materially over.

⚠️
Ignoring ramp time

New hires do not contribute immediately. A plan that assumes day-one productivity overstates capacity for the first quarter or two.

Frequently Asked Questions

How do I calculate required headcount?
Divide target revenue by your target revenue per employee. The gap against current headcount gives net additions needed.
Why include attrition in hiring plans?
Because departures must be replaced before any growth hiring adds capacity. At 20% attrition, a fifth of your recruiting effort just maintains the status quo.
What revenue per employee should I target?
It depends on your sector and model. Looking at your own historical trend and comparable companies is more useful than a universal benchmark.
How far ahead should I plan hiring?
At least the time to hire plus the ramp period — often four to six months before the capacity is actually needed.
Should contractors be included?
Yes, as full-time equivalents. Excluding them makes headcount plans look leaner than the actual resourcing.

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