Employer Cost Calculator
Calculate the true cost of employing someone in the UK
Find out how much it really costs to employ a member of staff in England, Scotland, Wales or Northern Ireland. Our free Employer Cost Calculator estimates your total annual and monthly employment costs, including Employer National Insurance, pension contributions, Employment Allowance and Apprenticeship Levy where applicable.
Whether you're recruiting your first employee, preparing a budget or comparing different salary levels, this calculator gives you a clear breakdown of the costs involved.
Who is this calculator for?
This calculator is ideal for:
- Small business owners
- Company directors
- Payroll administrators
- HR professionals
- Accountants and bookkeepers
- Anyone planning to employ staff
BusinessToolHub
Employer Cost Report
Cost breakdown
How this is calculated
How to use the calculator
- Enter the employee's annual salary.
- Choose the pension arrangement.
- Select any advanced options if required.
- Click Calculate.
- Review the employer cost breakdown.
- Print or copy your results if required.
Frequently Asked Questions
Find answers to common questions about employer costs, National Insurance, workplace pensions, Employment Allowance and the Apprenticeship Levy.
Does this include Employer National Insurance?
Yes. The calculator estimates Employer National Insurance using the selected National Insurance category and the published thresholds for the chosen tax year.
Can I calculate the cost of employing a director?
Yes. Select Director under the Advanced Options section and the calculator will apply the annual National Insurance calculation method.
Does this include pension contributions?
Yes. The calculator supports:
- No pension
- Auto-enrolment (qualifying earnings)
- Percentage of full salary
- Salary sacrifice arrangements
Does this calculate the Apprenticeship Levy?
Yes, where applicable. Enter your existing annual payroll and the calculator estimates any additional Apprenticeship Levy generated by employing this person.
Does this include Employment Allowance?
Yes. If you are eligible, you can choose to apply Employment Allowance and the calculator will reduce Employer National Insurance accordingly.
Can I print my results?
Yes. Once you've completed a calculation, click Print to generate a printer-friendly report that you can save as a PDF or print for your records.
Is this calculator free?
Yes. All BusinessToolHub calculators are free to use.
Disclaimer: This calculator is provided for guidance only and aims to reflect current UK payroll legislation for the selected tax year. Results are estimates and should not be relied upon as tax, payroll or legal advice.
Actual employment costs may differ depending on payroll frequency, employee circumstances, statutory payments, benefits, National Insurance category, pension scheme rules and future legislative changes.
Always seek professional advice where important financial or employment decisions are being made.