Hiring Cost Ramp
Calculator
Results
- Break-even month
- 10 mo
- Cumulative net cash
- $414,750.00
- Monthly payroll cost
- $26,562.50
- Total cost
- $992,250.00
Projected path over the horizon
- Cumulative net cash
- Revenue produced
Period-by-period projection
| 1 | 26,562.50 | 7,000.00 | -19,562.50 | -55,562.50 |
| 2 | 26,562.50 | 14,000.00 | -12,562.50 | -68,125.00 |
| 3 | 26,562.50 | 21,000.00 | -5,562.50 | -73,687.50 |
| 4 | 26,562.50 | 28,000.00 | 1,437.50 | -72,250.00 |
| 5 | 26,562.50 | 35,000.00 | 8,437.50 | -63,812.50 |
| 6 | 26,562.50 | 42,000.00 | 15,437.50 | -48,375.00 |
| 7 | 26,562.50 | 42,000.00 | 15,437.50 | -32,937.50 |
| 8 | 26,562.50 | 42,000.00 | 15,437.50 | -17,500.00 |
| 9 | 26,562.50 | 42,000.00 | 15,437.50 | -2,062.50 |
| 10 | 26,562.50 | 42,000.00 | 15,437.50 | 13,375.00 |
| 11 | 26,562.50 | 42,000.00 | 15,437.50 | 28,812.50 |
| 12 | 26,562.50 | 42,000.00 | 15,437.50 | 44,250.00 |
| 13 | 26,562.50 | 42,000.00 | 15,437.50 | 59,687.50 |
| 14 | 26,562.50 | 42,000.00 | 15,437.50 | 75,125.00 |
| 15 | 26,562.50 | 42,000.00 | 15,437.50 | 90,562.50 |
| 16 | 26,562.50 | 42,000.00 | 15,437.50 | 106,000.00 |
| 17 | 26,562.50 | 42,000.00 | 15,437.50 | 121,437.50 |
| 18 | 26,562.50 | 42,000.00 | 15,437.50 | 136,875.00 |
| 19 | 26,562.50 | 42,000.00 | 15,437.50 | 152,312.50 |
| 20 | 26,562.50 | 42,000.00 | 15,437.50 | 167,750.00 |
| 21 | 26,562.50 | 42,000.00 | 15,437.50 | 183,187.50 |
| 22 | 26,562.50 | 42,000.00 | 15,437.50 | 198,625.00 |
| 23 | 26,562.50 | 42,000.00 | 15,437.50 | 214,062.50 |
| 24 | 26,562.50 | 42,000.00 | 15,437.50 | 229,500.00 |
| 25 | 26,562.50 | 42,000.00 | 15,437.50 | 244,937.50 |
| 26 | 26,562.50 | 42,000.00 | 15,437.50 | 260,375.00 |
| 27 | 26,562.50 | 42,000.00 | 15,437.50 | 275,812.50 |
| 28 | 26,562.50 | 42,000.00 | 15,437.50 | 291,250.00 |
| 29 | 26,562.50 | 42,000.00 | 15,437.50 | 306,687.50 |
| 30 | 26,562.50 | 42,000.00 | 15,437.50 | 322,125.00 |
| 31 | 26,562.50 | 42,000.00 | 15,437.50 | 337,562.50 |
| 32 | 26,562.50 | 42,000.00 | 15,437.50 | 353,000.00 |
| 33 | 26,562.50 | 42,000.00 | 15,437.50 | 368,437.50 |
| 34 | 26,562.50 | 42,000.00 | 15,437.50 | 383,875.00 |
| 35 | 26,562.50 | 42,000.00 | 15,437.50 | 399,312.50 |
| 36 | 26,562.50 | 42,000.00 | 15,437.50 | 414,750.00 |
Comparison
| Scenario | Cumulative net cash | Total cost |
|---|---|---|
| Doing nothing | 0.00 | 0.00 |
| Your scenario | 414,750.00 | 992,250.00 |
Formula
net_t = H·rev·min(t/ramp,1) − H·(S/12)(1+o); cum₀ = −H·recruiting= 10.00
Note
Simplified model: this is the exact arithmetic of the stated recurrence applied to your inputs, with every rate held constant for the whole horizon. Real businesses see growth, churn, seasonality and costs move, and no projection accounts for competition, financing terms, tax or one-off events. Treat the crossing month as an order of magnitude, not a date, and check it against your own books before committing money.
More in Business projections
See all →Frequently asked questions
What counts as the "fully loaded" cost of a new hire?+
It's base salary plus payroll taxes, benefits, equipment, software licenses, and onboarding time from managers and peers. Most owners only budget the salary line and get surprised when the real cost lands 25-40% higher. The calculator adds these layers so the ramp reflects cash actually leaving the business, not just the offer letter number.
Why does the cost ramp instead of hitting full salary on day one?+
New hires rarely produce at full capacity immediately, but most of their cost — salary, benefits, equipment — starts on day one regardless. The ramp models productivity catching up over weeks or months while cost stays roughly flat, which is why the cash gap is widest in the first stretch, not at signing.
What does the breakeven point on the chart actually mean?+
It's the point where the hire's output (in revenue or value produced) crosses their fully loaded cost. Before that point you're subsidizing them out of existing cash flow; after it, they're net-positive. It is not the same as "they're now free" — it just means the ramp has paid back what it cost to get them there.
Should I use gross revenue or profit contribution as the value the hire produces?+
Use profit contribution, not gross revenue, or you will overstate how quickly the hire pays for themselves. If a salesperson generates $10,000 in bookings but your margin is 30%, only $3,000 of that offsets their cost. Feeding in top-line revenue is the single most common way this calculator gets misread.
How should I use this before making an offer versus after someone starts?+
Before an offer, run it to stress-test whether the role pays for itself within a cash runway you can tolerate — three to six months is typical for a small business. After someone starts, rerun it with their actual ramp speed to see if you need to adjust hours, delay the next hire, or extend a training period before hiring again.