Understanding total cost
The salary you offer is only part of what a hire costs. TeamCalc calculates the total cost to company by adding every mandatory and typical cost component.
Cost components
| Component | What it covers | |---|---| | Base salary | The gross annual salary (or day rate × working days for contractors) | | Employer NI | UK employer National Insurance at 2025/26 rates (15% above the secondary threshold) | | Pension | Employer pension contribution (default 5%, configurable) | | Benefits | Health insurance, learning budget, perks (default £2,000/year) | | Equipment | Laptop, monitors, peripherals (amortised annually) | | Office space | Desk cost per head (default £4,000/year, set to £0 for fully remote) | | Recruitment | Hiring cost amortised over expected tenure (default 15% of salary over 2.5 years) | | Management overhead | Manager time allocated per report |
Customising assumptions
Click the ⚙ Assumptions button (top-right of any team) to adjust default percentages and flat-rate costs. Changes apply to all roles in that team.
You can also override on the Scenarios → Assumptions page to model different cost structures side by side.
Contractors vs permanent
Contractor costs are calculated differently:
- Day rate × working days (default 230)
- No employer NI or pension (outside IR35)
- Agency margin (if applicable)
- No long-term benefits
Toggle any role between Permanent and Contractor to see the difference instantly.