How to use the headcount budget planner
The formula
Row total = headcount × average salary × (1 + on-cost% ÷ 100). The plan total is the sum of all rows; monthly budget = annual total ÷ 12.
What on-cost percentage should I use?
Use the combined employer percentage from your payroll — pension contributions plus payroll taxes plus insurance and benefits, as a single figure. If you are unsure, build it up per role type with the True Employee Cost Calculator first. As a rough planning range, many UK and US employers land somewhere between 15% and 30%.
Planning tips
Model planned hires as separate rows with their expected start point in mind (a role starting in July only costs about half a year in year one — halve the headcount figure for that row as a simple approximation). Keep a copy of each scenario by screenshotting the table before you change the numbers.
Example
3 engineers at $60,000 with 20% on-costs ($216,000) + 2 support staff at $45,000 with 10% on-costs ($99,000) = a $315,000 annual people budget for 5 people.
Frequently asked questions
How do I budget for a team of mixed salaries?
Add one row per role or level with its own headcount and average salary. Averages keep the plan simple while staying close to the real total.
Does the planner handle part-year hires?
Not date-by-date. As an approximation, count a mid-year starter as 0.5 headcount for their first year.
What is not included in this budget?
One-off and fixed costs such as recruitment fees, equipment, training, and office space. Add those separately, or estimate them per person with the True Employee Cost Calculator's fixed-cost rows.
Can I plan in pounds or dollars?
Yes — use the currency selector at the top. The maths is identical; only the symbol changes.
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