Salary Affordability Calculator
Calculate the maximum monthly payroll budget your business can sustain while hitting your target net profit margin.
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How this calculator works
Most founders hire based on "we need someone" rather than "we can afford someone." This calculator works backwards from your revenue, gross margin, other operating expenses, and target profit margin to tell you the maximum payroll budget — and average salary per hire at your planned headcount.
Max payroll = Gross profit − Other fixed costs − Target net profit | Avg salary per hire = Max payroll ÷ Headcount
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Payroll as % of revenue
Tech: 30–40%. Services: 50–70%. E-commerce: 8–15%. Know your industry benchmark before hiring.
Never hire to revenue, hire to profit
High revenue but thin margins can make a single bad hire cash-flow-negative. Always model the margin impact first.
Revenue should grow faster than headcount
If revenue/employee is declining, you're overhiring. Track this ratio quarterly.
Frequently Asked Questions
Tech: 30–40%. Services: 50–70%. E-commerce: 8–15%. Know your industry benchmark before hiring.
High revenue but thin margins can make a single bad hire cash-flow-negative. Always model the margin impact first.
If revenue/employee is declining, you're overhiring. Track this ratio quarterly.