Salary Budget Calculator
Plan and calculate total salary budget for your team or department. Factor in base salaries, benefits load, and planned headcount additions to project total people costs.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Salary Budget Calculator | Total People Cost = Salary x Benefits Load % x Headcount | $/year |
Step-by-Step Examples
$70k avg salary, 10 people, 25% benefits, 2 new hires, 3% raise.
- Current: $70kx10x1.25 = $875,000
- With raises (3%): $71,750x10x1.25 = $896,875
- New hires (6 months): $71,750x2x1.25x0.5 = $89,688
- Projected: $986,563 (+$111,563)
$95k avg, 5 people, 20% benefits, 3 new hires, 5% raise.
- Current: $570,000
- Projected: $804,600
- 3 new hires are adding 41% to budget — significant growth investment
$65k avg, 25 people, 30% benefits, 1 new hire, 3% raise.
- Current: $2,112,500
- With raises and 1 hire: ~$2,236,000
- Stable, predictable budget growth
Real-World Applications
Common Mistakes to Avoid
Employer cost is always higher than base salary. US benefits load typically adds 25-40% for health insurance, payroll taxes, retirement matching, and paid leave.
A hire joining in July costs 50% of their annual cost in the current year (6 months). Many budget plans overcount new hire cost.
For startups, stock options and RSUs are a significant part of total compensation. Include fully diluted equity value in total compensation cost for accurate comparison.