What If I Hire Scenario Modeler
Before you hire, know the financial impact. Model the full cost of a new employee — salary, benefits, taxes — against expected revenue increase to find your break-even month and ROI.
1Compensation & Benefits
Health insurance, 401k, PTO, etc. Typical: 15–25%
FICA, FUTA, SUTA, workers' comp. Typical: 8–12%
2Expected Revenue Impact
The additional annual revenue this hire will generate.
3Ramp-Up Period
Time for the new hire to reach full productivity and revenue generation.
Enter salary, benefits, and expected revenue to model the hiring scenario.
Frequently Asked Questions
Should I include benefits in the cost?
Yes. Benefits (health insurance, 401k, PTO) are a real cost. Typical benefits add 15–25% to salary. Not accounting for them underestimates true employee cost.
What if the hire doesn't generate revenue?
Support roles (admin, HR, finance) don't directly generate revenue but enable growth. Model conservatively — estimate the indirect revenue impact or cost savings they create.
How do I know the expected revenue increase?
Base it on historical data: What revenue did your last hire generate? What market opportunity exists? Be conservative — overestimating revenue kills profitability.
What if the hire doesn't break even?
It may still be worth hiring if: (1) it enables other revenue growth, (2) it reduces costs elsewhere, or (3) it's a strategic investment. But know the cost upfront.