Can I afford to hire an employee for $X salary?

Period or pro forma financial information

% Sales

Source

Period total sales:

Income Statement

Period Direct Job Costs (Cost of Goods Sold)):

Income Statement

Gross Profit (Contribution Margin):

Period Fixed Costs (Operating and Overhead):

Income Statement

Calculate the total cost of hiring a new employee

Annual base salary of new employee:

Annual bonus:

Employment taxes (employER taxes, worker's comp, etc.):

Annual benefits (retirement contribution, paid time off, vehicle, phone, etc):

Total annual cost of new hire ($X):

Result of hiring new employee (at current Contribution Margin)

Annual sales increase required to afford new hire:

Break-even effect of hiring new employee (at current Contribution Margin)

Period Break-even Sales:

New adjusted period break-even sales:

Change in period break-even sales:

Analysis (at current Contribution Margin)

Will the new hire make the company more efficient, increase or enable sales, or benefit the company in some way that offsets the expense of hiring?

Each new hire must more than pay for itself.