Cost Per Employee Calculator

Formula

To calculate the cost per employee:

\[ \text{CPE} = \frac{\text{AOC}}{\text{E}} \]

Where:

CPE is the cost per employee ($/employee)
AOC is the annual overhead costs ($)
E is the number of employees

What is Cost Per Employee?

Cost per employee is a business metric used to describe the true cost per employee at a company. This takes into account salaries and benefits. It helps businesses understand the financial impact of each employee on the company's budget.

Examples

Example 1:

Consider a company with the following details:

Annual Overhead Costs: $120,000
Number of Employees: 30

The cost per employee would be calculated as follows:

\[ \text{CPE} = \frac{120000}{30} = 4000 \]

So, the cost per employee is $4,000.

Example 2:

Consider another company with the following details:

Annual Overhead Costs: $200,000
Number of Employees: 50

The cost per employee would be calculated as follows:

\[ \text{CPE} = \frac{200000}{50} = 4000 \]

So, the cost per employee is $4,000.