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Payroll Cost Calculator

Estimate the annual and monthly payroll cost of a whole team, including employer National Insurance and pension.

Payroll Calculator

Total annual and monthly payroll cost for a whole team, including employer contributions.

£891,070Annual payroll cost · £74,256 per month
Salaries£775,000Employer NI+£97,500Employer pension+£18,570Total annual£891,070Cost per employee£35,643
A planning estimate using flat averages and 2025/26 employer rates. Real payroll varies with individual salaries, tax codes, benefits and Employment Allowance eligibility.
How this is calculated
Each employee costs their salary, plus 15% employer NI above £5,000, plus 3% pension above £6,240. Multiplied across 25 employees at an average of £31,000: £891,070 a year.
These calculators use 2025/26 UK rates for England and Northern Ireland and are provided for guidance only. They are not tax, legal or financial advice — check figures against HMRC guidance or your accountant before acting on them. Scotland operates different income tax bands.
How it works

About The Payroll Cost Calculator

Each employee costs their salary, plus employer National Insurance at 15% above £5,000, plus employer pension on qualifying earnings above £6,240. The calculator applies those to an average salary across the team.

It is a planning estimate. Real payroll varies with individual salaries, tax codes, benefits and Employment Allowance eligibility.

FAQ

Questions, Answered

Multiply headcount by average salary, then add employer National Insurance and pension contributions. The calculator does this for you.

It gives a quick budget figure. NI and pension thresholds apply per person, so a team with very uneven salaries will differ from the estimate.

No. Eligible employers can reduce their NI bill with the Employment Allowance.

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