Enter your assumptions
How it is calculated
Fully loaded cost = salary × (1 + burden rate) + other employment costs. Net contribution = estimated annual gross profit contribution − fully loaded cost. Simple return on cost = net contribution ÷ fully loaded cost.
The contribution figure is your estimate, not a forecast. This model excludes recruiting, ramp time, utilization changes, supervision, taxes beyond your burden input, and other effects. General education only, not engineering, legal, tax, or investment advice. Licensed PE judgment and local codes govern engineering work.
Example scenario
A hypothetical civil engineering firm owner estimates a $100,000 annual salary, 25% benefits and payroll burden, $10,000 in other annual employment costs, and $160,000 in annual gross profit contribution for a prospective professional engineer or project manager. The calculator reports $135,000 in loaded cost, $25,000 in net contribution, and an 18.5% return on cost. The inputs are hypothetical owner estimates, not a hiring benchmark or forecast. The result can help the owner decide whether the proposed role merits a closer staffing and workload review. Before making an offer, check how the contribution estimate was built, whether there is enough suitable work, and how ramp time, supervision, recruiting, and other costs affect the plan. Compare the role’s responsibilities with current delivery needs and confirm that the firm can support the person’s workload and professional responsibilities.
Method, inputs and limits
Purpose
Compare owner-entered expected annual gross profit contribution with the fully loaded employment cost of a professional engineer or project manager.
Inputs and defaults
Salary: $120,000/year; benefits and payroll burden: 30% of salary; other annual employment costs: $15,000; estimated annual gross profit contribution: $200,000. All inputs nonnegative.
Formulas
Fully loaded cost = salary × (1 + burden percent ÷ 100) + other cost. Net contribution = expected gross profit contribution − loaded cost. Return on cost = net contribution ÷ loaded cost × 100%, when loaded cost is above zero.
Outputs
Loaded annual cost, estimated net contribution, simple return on cost.
Test cases, expected values
- Defaults: $171,000 loaded cost; $29,000 net contribution; 17.0% return on cost.
- $100,000 salary, 25% burden, $10,000 other cost, $160,000 contribution: $135,000 cost; $25,000 net; 18.5% return.
- $0 salary, 0% burden, $0 other cost, $0 contribution: $0 loaded cost; $0 net; return unavailable.
Disclaimer
Contribution is an owner estimate, not a forecast. Excludes hiring, ramp, supervision, taxes beyond burden input, and other effects. General education, not professional advice. Licensed PE judgment and local codes govern engineering work.
