The maths, explained
The wage on a payslip is only one part of an employee’s cost. This model combines paid wages, your entered employer-cost percentage, and annual benefits, then spreads that total over productive hours. The difference between paid time and productive time matters: holidays, training, travel and administration can be paid without generating chargeable work.
(Hourly wage × paid hours × (1 + employer cost rate) + annual benefits) ÷ productive hours
A worked example
The worked example below uses the calculator’s initial inputs and the same calculation function as the live interface. Replace example amounts with your own records; changing currency does not convert the numbers. Physical reference dimensions are stored in metric units, and the interface can display their imperial equivalents. Rounded display values may differ slightly from the full precision retained in the calculation.
| Your inputs | Editable example — not a market quote |
|---|---|
| Hourly wage (EUR) | 30 |
| Paid hours per year | 2,080 |
| Productive hours per year | 1,800 |
| Employer payroll taxes and mandatory costs (%) | 10 |
| Annual benefits and insurance (EUR) | 6,000 |
| True cost per productive hour | €41.47 |
| Annual employer cost | €74,640.00 |
| Burden above base wage | 38.22% |
Assumptions used
All cost inputs must cover the same period and use one currency. Employer charges and overhead remain business-specific inputs. Defaults are educational scenarios, not market averages. This model does not determine tax obligations or contractual rights. Ratios with a zero denominator are marked as undefined rather than presented as a misleading zero percent.
On your side of the Atlantic
The European English edition starts with Ireland and euro formatting. It is not a single EU tax model: confirm the country, work category, VAT treatment and local product dimensions.
Common mistakes
Keep paid and productive hours on the same annual basis. Do not add benefits again if your entered wage already includes them. An example employer-cost percentage is not a payroll rate for your jurisdiction.
Before ordering or tendering, compare at least two scenarios: your base takeoff and a realistic alternative. Keep assumptions with the result so differences are explainable. Save an estimate only on a suitable device. A shared link contains the entered values, so avoid including confidential information. An exported estimate is a snapshot and does not update when a supplier changes a price.
Questions from the jobsite
What does this calculator measure?
What is the first mistake to avoid?
Are the example prices supplier quotes?
Which tax assumptions apply in Ireland / Europe?
How should I handle waste and contingency?
Can I use the result in a tender or estimate?
Planning estimate only. Not a substitute for a professional quote or local building-code compliance. Verify quantities, tax treatment and contract requirements.
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