Law Firm Hiring Cost Calculator

Law firm hiring cost calculator

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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.

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Your next step

Put a plan behind your next hire.

You’ve explored the cost. Now work through what the role should accomplish, how it fits your future firm, and what you need to make it work.

Define the need and future role
Compare levels of investment
Plan for ramp-up and reserves
Set expectations and review points

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Spending relative to revenue

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