Law Firm Hiring Cost Calculator

Law firm hiring cost calculator

Put some numbers behind the decision.

Illustrative numbers are filled in. Change them to explore a hire. Your financial entries stay in your browser.

Proposed arrangementMonthly revenue ($)Use a representative monthly average of earned revenue, not client trust deposits or loans.Current monthly operating costs ($)Include current payroll, employer taxes, benefits, rent, software, insurance and other operating expenses. Keep owner-pay treatment consistent; exclude the proposed hire.Annual salary ($)Include expected bonuses or commissions in annual compensation. For hourly roles, account for paid hours and any expected overtime separately.Employer payroll taxes (%)Employer share only: Social Security, Medicare, federal and state unemployment, and applicable local employer payroll taxes. Ask your payroll provider for an effective rate that reflects wage caps. The 10% example is not a prescribed rate. Employee withholdings are already part of gross pay.Monthly benefits ($)Employer-paid health, dental, vision, life or disability insurance; retirement contributions; HSA contributions and benefit administration. Exclude employee-funded amounts and taxes entered above. Do not add salaried paid leave twice.Payroll processing / payment fees ($ per month)Added per-person or per-pay-run charges, allocated annual filing fees, or contractor payment fees. Include a new base subscription only if this hire requires it.Workers’ compensation ($ per month)Incremental premium from your insurer. Keep this separate from benefits and payroll taxes to avoid counting it twice.Other added monthly costs ($)Additional software seats, phone, workspace, professional dues, ongoing training, and incremental malpractice or other business insurance. Include only costs this hire adds.One-time recruiting, equipment & setup ($)Recruiting fees, background checks, computer and furniture, initial setup and outside onboarding or training. Existing supervisor time is a capacity cost, not a new cash payment.

Use a consistent revenue period. Keep owner-pay treatment consistent with your accounts. Enter only new costs for the hire; don’t count existing expenses again. Payroll costs are an editable estimate.

Added monthly commitment

Annual recurring cost

First-year cost, including setup

Monthly operating costs after hire

Spending relative to revenue

Before hire

After hire

Revenue held constant. First-year cost assumes 12 months at the entered rate. Training time, lost production and reserves need separate planning.

Cost definitions & sources

IRS: employer taxes
BLS: compensation and benefit categories

Contractor status depends on the actual working relationship, not simply which option is selected here.