How the First Helper Cost Calculator works
Weekly pay is the hourly pay times the hours. On top of that, employers pay payroll taxes (such as Social Security, Medicare and unemployment) and usually workers' comp insurance.
We add your estimates for those as a percentage of pay, plus monthly costs like gear and a phone, to get the real weekly cost.
Extra jobs a week is that cost divided by what each job leaves after supplies and the truck. Those are the jobs the helper needs to make possible just to break even.
Payroll taxes and insurance rates vary by state, trade and claims history, so treat the defaults as rough estimates and ask your payroll provider or insurer for your real rates.
Tips from the trade
- Hire when you're turning away work, not when you hope to find more. The jobs should be waiting.
- Start part-time on your busiest days, then add hours as the work grows.
- Raise prices before you hire, so every job covers the helper's share of the time.
A worked example
Here's the example that's already filled in above, so you can see how the First Helper Cost Calculator works before you enter your own numbers.
- Hourly pay$18
- Hours a week35
- Employer payroll taxes (estimate)10%
- Workers' comp and insurance (estimate)6%
- Gear, uniforms, phone per month$50
- Average job price$75
- Supplies and truck cost per job$12
The result: real cost per week $742; real cost per year $38,602; real cost per hour $21.21; extra jobs a week to cover it 12.
A helper at $18.00 an hour really costs about $21.21 an hour. You'd need about 12 more jobs a week at $75 to cover it before it adds to your profit.
Related free tools
- Weekly Capacity Calculator: how many regular customers your crew can handle before you need to hire or raise prices.
- Am I Undercharging? Price Check: what you really earn per hour on a job after costs and taxes, and the price that pays you what you need.
- Groomer Commission Calculator: what a groomer earns on commission plus tips, and what's left for the shop.
When you need more than the free First Helper Cost Calculator
This calculator answers one quick question. Running a business means doing it on every job, with your own rates saved and a quote you can send.
First Helper Cost Calculator questions
How much does it really cost to hire an employee?
More than the hourly pay. Employer payroll taxes, workers' comp, insurance and gear often add 15% to 30% on top. This calculator adds them up with your own estimates.
Should my first helper be an employee or a contractor?
It depends on how you direct their work, and the rules are strict. Check the IRS and your state's guidance, or ask a professional, before deciding.
How many jobs does a helper need to bring in?
At least enough to cover their real cost. The calculator shows that number per week, so you know the minimum before they add to your profit.
When is the right time to hire?
When you're regularly turning away work or working hours you can't keep up. Having the jobs waiting makes the first months much less risky.