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New hire payback calculator

Enter the hiring cost, the monthly value the employee generates (revenue, savings), and the monthly cost of keeping them (salary with taxes and other costs). The calculator computes the net monthly contribution and the payback period.

Result

Payback period, months

Net contribution per month

Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.

This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Net contribution per month = value generated per month − cost to keep per month. Payback period = hiring cost ÷ net contribution per month.

If the net contribution is negative or zero (the employee is currently generating less value than they cost), no payback period is shown — that's expected for the first months in many roles while they ramp up.

For a more accurate result, use value and cost figures from after the ramp-up period, once the employee is at planned productivity, rather than first-month numbers.

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