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.