Result
Payback period, months
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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.