Loaded Cost

Formal

The total cost of employing a member of staff including the base salary cost. In addition to salary, other hire costs include: Travel, IT, Healthcare, State Taxes, Insurance, Commission, Bonuses. In calculating the total loaded cost of a person, for investment appraisal, a good approximation is to double the salary cost.

Real-world Example

A company calculates the loaded cost of an employee at $85,000 - not just their $65,000 salary, but also employer taxes, benefits, and overheads, giving a fuller picture of what that role actually costs the business.