--- title: True cost of hire calculator description: "Enter a UK salary to see the year-one cost of a hire: employer National Insurance, pension, agency fee and ramp-up. Instant result, nothing stored." --- [![B2B Copywriter](https://b2bcopywriter.uk/hubfs/B2B_Logo_0C031C_on_F3F4F6_2x.png)](https://b2bcopywriter.uk/) - [Home](https://b2bcopywriter.uk/) - [About](https://b2bcopywriter.uk/about) - This you? [When you've lost control of AI contentToo much slop. Not enough time.](https://b2bcopywriter.uk/content-control) [When you need help, not headcountSenior thinking. No recruitment.](https://b2bcopywriter.uk/senior-support) [When the story stops keeping upThe product moves. The messaging drifts.](https://b2bcopywriter.uk/messaging-drift) [When your AI sounds the same as everyone elseEveryone's publishing. Nobody's standing out.](https://b2bcopywriter.uk/ai-content-problem) [When sales goes off-scriptMarketing produces. Sales improvises.](https://b2bcopywriter.uk/sales-enablement) [When the pipeline moves too slowlyGood leads. Long waits. Lost deals.](https://b2bcopywriter.uk/long-sales-cycle) - [Blog](https://b2bcopywriter.uk/blog) - [Tools](https://b2bcopywriter.uk/tools) [Content Review Gap CalculatorHow much of your content ships unchecked?](https://b2bcopywriter.uk/content-review-gap-calculator) [Messaging Drift ScoreHow far has your story drifted from your product?](https://b2bcopywriter.uk/messaging-drift-score) [True Cost of a HireWhat that new role really costs in year one.](https://b2bcopywriter.uk/true-cost-hire-calculator) - [FAQs](https://b2bcopywriter.uk/freelance-b2b-copywriter-faq) - [Case Studies](https://b2bcopywriter.uk/case-studies) - [Contact](https://b2bcopywriter.uk/contact) Hiring cost calculator # The True Cost of a Hire Calculator What does a new hire really cost in year one? Find out with this useful calculator for marketing leaders weighing up a hire. 5 inputs · Instant result · Nothing stored, no email · By [Mike Sharkey](https://b2bcopywriter.uk/about) · Published 19 October 2026 · Updated 19 October 2026 Definition Cost of a hire (*n*.) Everything a new permanent role costs in its first year, not just the salary you put on the job ad. It means National Insurance and pension, recruitment fees, and the reduced producitivity as a new hire gets up to speed. ## Work out what a hire really costs Set the salary and how you would hire. The result updates as you go. Nothing you enter is stored or sent anywhere. Start from £45,000 £65,000 £90,000 Illustrative starting points, not benchmarks. Change anything. Base salary for the role £55,000 The salary on the job ad, before employer costs. How would you hire? Agency · 15% Agency · 20% Agency · 25% Direct hire Agency fees are a percentage of first-year salary. A direct hire still costs job ads and interview time. Employer pension contribution 3% · minimum 5% 8% As a share of salary. Use your own scheme if it's higher than the minimum. Months until full output 3 months How long before the hire is doing the whole job. A starting point, not a benchmark. Average output while ramping up Slow start · 40% Half · 50% Quick · 70% The share of the job done, on average, across the ramp-up months. The rest is pay for output you don't yet get. Your year-one cost 0% is salary £0 all-in cost in year one £0 on top of the salary 0.00x the salary, once everything is added £0 a month, all in Where the money goes Where this is showing up Three ways to bring it down: Start here Copy this result to cite it, or to drop into Slack or an email: Copy result ## Methodology The calculator adds four things to the salary: employer National Insurance, employer pension, the cost of finding the person, and the output lost while they ramp up. There are no hidden multipliers. Every assumption that matters is on show and editable. **Employer NI** = (salary − £5,000) × 15% **Employer pension** = salary × pension % **Loaded salary** = salary + employer NI + employer pension **Hiring cost** = salary × agency fee %, or £2,000 for a direct hire **Ramp-up cost** = loaded salary ÷ 12 × months to full output × (1 − average output while ramping) **Year-one cost** = loaded salary + hiring cost + ramp-up cost **Multiple of salary** = year-one cost ÷ salary ### Assumptions, and how to change them | Assumption | Default | Why, and what to do with it | | --- | --- | --- | | Employer National Insurance | 15% above £5,000 | The employer rate and secondary threshold for 2026/27 at the time of writing. [IRIS summarises the 2026/27 changes](https://www.iris.co.uk/blog/payroll/employer-national-insurance-contributions-guide/). Check the current figures on GOV.UK before using the result in a budget. Employment Allowance is not applied. | | Employer pension | 3% of salary | The statutory minimum employer contribution under automatic enrolment is 3% of qualifying earnings. The calculator applies the percentage to the full salary, so it rounds the figure up slightly. Choose 5% or 8% if your scheme is more generous. | | Agency fee | 20% | Agency fees are commonly quoted at 15 to 25% of first-year salary. Your terms set the real number. Pick the nearest option, or switch between them to see what the route changes. | | Direct hire | £2,000 | A placeholder for job ads and interview time. It is not a benchmark, and it stays flat whatever the salary. | | Months to full output | 3 | A placeholder. Senior roles and complex products often take longer. Change it and watch how sensitive the total is. | | Output while ramping | 50% | An average across the ramp-up months, so a hire who starts at 20% and ends at 80% averages about 50%. The missing share is treated as paid-for output you do not yet get. | ### What each result means The bands compare the extra cost with the salary. They are a way of reading the number, not an industry benchmark. #### Light Under 25% on top of salary The extra costs are modest. Most of the spend is the salary itself. - Confirm the on-costs with finance rather than relying on the defaults - Plan the first 90 days before the offer goes out - Check how much the hiring route is adding #### Moderate 25 to 39% on top of salary A meaningful layer sits on top of the salary, mostly employer costs and the first few months. - Compare an agency with a direct hire to see what the fee is worth - Write a 90-day plan so the ramp-up does not stretch - Check the workload justifies a permanent role #### Heavy 40 to 59% on top of salary Well over a third of the year-one cost sits on top of the salary, and the fee and the ramp-up usually account for most of it. - Price the route: could a direct hire or a referral cut the fee? - Decide whether the workload is constant or variable - Put the alternatives next to the hire before committing #### Steep 60% or more on top of salary The year-one cost is close to double the salary. Test the route and the ramp-up assumptions before treating the number as fixed. - Check the ramp-up months and the output share against your own experience - Look at what is driving the total before you look at the salary - Compare a permanent hire with part-time or fractional cover for the same work ### What this doesn't measure #### What a hire that doesn't work out costs A mis-hire means paying the fee, the ramp-up and the notice period twice. It is a real risk, and it is not in the number. #### Equipment, tools and training Laptops, software seats and courses are not included. Add them to the total if they apply to your role. #### Notice periods and cover Weeks of handover, and the work nobody does while the seat is empty, are not priced here. #### Whether the work is constant The calculator prices a permanent role. It cannot tell you whether the workload needs one. [Part-time and fractional cover](https://b2bcopywriter.uk/senior-support) are the usual alternatives to compare. ![Mike Sharkey](https://b2bcopywriter.uk/hubfs/Mike%20Sharkey%20B2B%20copywriter.png) ## About this tool Built by [Mike Sharkey](https://b2bcopywriter.uk/about), a B2B copywriter and editorial consultant who has spent fifteen years working with marketing teams at organisations including Meta and Google Cloud. It's offered with no login and no data collection, as a way for marketing leaders to see the full cost of a hire before they commit. It is a planning estimate, not financial or legal advice. ## Related ### [When you need help, not headcount Senior support without the hire What fractional editorial support looks like, and when it is a better fit than a permanent role.](https://b2bcopywriter.uk/senior-support) ### [Calculator The Content Review Gap Calculator Before you hire, see how many review hours your content volume actually needs.](https://b2bcopywriter.uk/content-review-gap-calculator) ### [Diagnostic The Messaging Drift Score Eight questions on whether your messaging has kept up with your product.](https://b2bcopywriter.uk/messaging-drift-score) So, is a hire the right move? Here's what the alternative looks like for a growing B2B team. [Learn more →](https://b2bcopywriter.uk/senior-support) ## Frequently asked questions ### What is the true cost of a hire? The true cost of a hire is everything a new permanent role costs in its first year, not only the salary on the job ad. It adds employer National Insurance, employer pension contributions, any recruitment fee, and the output lost while the new person gets up to speed. On a £55,000 salary with an agency fee, those defaults come to roughly £83,000 in year one. ### How is the true cost of a hire calculated? Employer National Insurance is 15% of earnings above £5,000. Employer pension is a percentage of salary, 3% by default. The hiring cost is either an agency fee, 20% of salary by default, or a £2,000 placeholder for a direct hire. The ramp-up cost is the monthly loaded cost multiplied by the months to full output and by the share of output not yet delivered, 3 months and 50% by default. The sum of salary and all four is the year-one cost. ### Is employer National Insurance included? Yes. The calculator applies the employer rate of 15% to earnings above the £5,000 secondary threshold, which is the 2026/27 position at the time of writing. Check the current figures on GOV.UK before you rely on the result for a budget. ### How much does a recruitment agency charge? Agency fees are commonly quoted as 15 to 25% of first-year salary, and the calculator defaults to 20%. Your contract sets the real figure, so choose the nearest option or compare all three to see how much the route moves the total. ### How long does it take a new hire to reach full output? It varies by role and by how well the first 90 days are planned. The calculator uses 3 months at 50% output as a placeholder, not a benchmark. A senior role in a complex product area can take longer, so change the months and the output share and watch how sensitive the result is. ### Are my answers stored? No. The calculation runs in your browser. Nothing you enter is sent or stored, and there is no email gate. ### Does a high number mean I should not hire? No. A permanent hire is the right answer when the workload is constant and growing. The number is there so the decision is made on the full cost, and so it can be compared with other ways of covering the work, such as part-time or [fractional senior support](https://b2bcopywriter.uk/senior-support). [![B2B Copywriter](https://b2bcopywriter.uk/hubfs/B2B_Logo_0C031C_on_F3F4F6_2x.png)](https://b2bcopywriter.uk/) [Home](https://b2bcopywriter.uk/) [About](https://b2bcopywriter.uk/about) [Tools](https://b2bcopywriter.uk/tools) [Senior Support](https://b2bcopywriter.uk/senior-support) [Case Studies](https://b2bcopywriter.uk/case-studies) © 2026 B2B Copywriter Cookie Settings ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "The true cost of a hire is everything a new permanent role costs in its first year, not only the salary on the job ad. 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