What a new technician costs
An open seat costs the margin that technician would earn each week, if the work is waiting.
Technician hiring cost
firmkit.co/tools/hiring-cost-calculator/ · Oct 19, 2026
Example numbers, not yours.
Your calculation, step by step
- $28.00 x 40wage times paid hours a week
- x 1.25burden of 25% on top
- = $1,400weekly wage cost
- x 52weeks, $72,800 of wages in the first year
- $600 + 8 x $60recruiting cash plus owner interview hours
- + $6,000truck, tools and uniform
- = $79,880first-year cost
- 28 x $110 x 55%billable hours, revenue an hour, margin
- = $1,694margin per week when the seat is full
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- A failed-hire scenario with the cost of hiring again
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A planning aid, not accounting or legal advice.
Made with firmkit.co/tools/hiring-cost-calculator/. A planning aid, not accounting or legal advice.
How the numbers are worked out
The formula, in words
Weekly wage cost = hourly wage x paid hours x (1 + burden)
First-year cost = recruiting + equipment + 52 weeks of wage cost. Recruiting = cash cost + owner hours x what an owner hour is worth
Margin per week when full = billable hours x revenue per hour x margin. The open-seat cost is that figure
Ramp shortfall = ramp weeks x weekly wage cost x (1 - speed while ramping). It is part of wages and is shown, not added again
Payback = the first week the running total of margin earned, less wages and the up-front cost, reaches zero. Margin is cut to your ramp speed during the ramp
No percent-of-salary rule of thumb is used. Every line comes from a number you typed.
What the tool cannot know
- Whether there is enough work to keep a new tech billing.
- Morale, quality and the effect on your other crews.
- Overtime you would pay instead of hiring.
- Tax effects, which belong with your CPA.
Every assumption, and who set it
| Assumption | Value | Set by |
|---|---|---|
| Wage, hours, recruiting, equipment | Your numbers | You |
| Burden | 25% as an example | You, ask your CPA |
| Ramp weeks and speed | 8 weeks at 50% as an example | You |
| Billable hours, revenue an hour, margin | Your numbers | You |
| Work is waiting | Yes for the open-seat figure | You decide if that is true |
Sources
- No outside statistic is used. Burden is a share you set from your own payroll records. A planning aid, not accounting or legal advice.
Source check
- Outside statistics. None used on this page
Questions people ask
What does an open technician seat cost?
It costs the margin that technician would earn each week, if jobs are lined up for them. Multiply billable hours, revenue per hour and your margin. If there is no backlog, the seat costs less, because jobs are not being turned away. Use your own numbers, not an industry average.
How long until a new technician pays back?
Payback is the week the running total reaches zero. It counts the up-front cost, the wages while they ramp up and the margin they earn at your ramp speed. If their margin never exceeds their wages, the hire does not pay back at those numbers. Test billable hours and ramp weeks.
What is burden on wages?
Burden is what an employee costs on top of their paycheck: payroll taxes, workers compensation, insurance and benefits. It is shown as a percent of wages. The right figure is specific to your company, so take it from your payroll records or ask your CPA instead of guessing.
Should I hire or subcontract?
Compare the numbers. A subcontractor has no ramp, burden or equipment, but you give up margin and some control. A hire costs more up front and pays back if the work is steady. This tool shows the hire side. Add your subcontractor price to your job pricing and compare.
What does ramp mean here?
Ramp is the time a new technician takes to reach full speed. Early on they work slower, need help and make mistakes. You set the weeks and the share of full speed they reach while ramping. The shortfall is wages paid for output not yet produced, and it is part of their wages.
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