Employee ROI Calculator
Employees are an investment. Calculate the exact Return on Investment (ROI) of a hire by comparing their value generated against their total cost.
Value Created
How much revenue did this person bring in (or save) for the company this year?
Fully Burdened Costs
Return on Investment
For every $1 spent on this employee, the company makes back $1 plus $1.00 in profit.
Revenue to Cost Ratio
Are Your Employees Generating a Return?
In business, every hire must generate more value than they cost. If an employee costs $100,000 in salary and benefits, but only generates $90,000 in revenue, the company is losing money on that hire. Calculating Employee ROI helps you understand the true efficiency of your workforce.
The Fully Burdened Cost
When calculating the cost of an employee, you cannot just look at their base salary. You must calculate their "Fully Burdened Cost", which includes:
- Base Salary & Bonuses
- Employer Payroll Taxes
- Benefits (Health Insurance, 401k Match)
- Overhead (Software licenses, office space, equipment)
Typically, an employee's fully burdened cost is 1.25x to 1.4x their base salary.
Measuring "Value Generated"
For a salesperson, "Value Generated" is easy to measure: it's the revenue they closed. For a software engineer or customer support agent, it is harder. You must estimate the financial value of the code they wrote, or the value of the customers they saved from churning. A healthy business usually aims for an Employee ROI of 200% to 300% (meaning the employee generates 2 to 3 times their cost in value).
Frequently Asked Questions
What is the Employee ROI?
The Employee ROI is a free online tool designed to help you calculate employee return on investment by comparing value generated to fully burdened cost.
How much does the Employee ROI cost?
Our Employee ROI is 100% free to use. We do not require any signups, subscriptions, or credit cards.
Is my data safe when using this tool?
Yes. All calculations are performed locally in your web browser. We do not store or save your financial data or inputs on our servers.