This calculator determines whether your business can financially support a new hire by comparing the true cost of employment against your current profit and cash reserves.
Purpose:
This calculator determines whether your business can financially support a new hire by comparing the true cost of employment against your current profit and cash reserves. Enter your monthly revenue, current profit, and cash reserves. Then add the proposed salary, expected revenue contribution from the hire, and months until they're productive. The calculator gives a clear verdict with supporting analysis.
Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) for quick access.
- Run before starting any recruitment process
- Update with actual salary offers during negotiation
- Recalculate if business conditions change
- Use for different role scenarios
Understanding Basics:
True employment cost includes salary plus superannuation (11.5%) plus on-costs (approximately 5%) for workers compensation, payroll tax, and other expenses.
Benefits for SMEs:
- Avoid overcommitting on payroll
- Understand the true cost of employment
- Plan hiring timing based on cash position
- Make confident hiring decisions
Considering building an internal finance team?
We'll show you exactly what our three-tier model covers, how it compares to internal hires, and what it would cost for your business.
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