Firmkit

What a new technician costs

An open seat costs the margin that technician would earn each week, if the work is waiting.

Results are free and run in your browser. An email adds the full plan.

Technician hiring cost

firmkit.co/tools/hiring-cost-calculator/ · Oct 19, 2026

Example numbers, not yours.

    Fields start with round example numbers. Replace them with yours.

    Changes example wording only. Your numbers and the arithmetic do not change.

    The hire

    What you pay a new technician.

    25%

    Payroll taxes, workers comp, insurance and benefits as a share of wages. Your CPA has the real figure.

    Getting them in the truck

    Job ads, recruiter fee, background check.

    Your own number. What an hour of yours would earn elsewhere.

    Count what you buy new for this person.

    Weeks until they work at full speed.

    50%

    The share of full productivity during the ramp.

    What they bring in

    55%

    After materials, before this tech’s wages.

    Your calculation, step by step
    1. $28.00 x 40wage times paid hours a week
    2. x 1.25burden of 25% on top
    3. = $1,400weekly wage cost
    4. x 52weeks, $72,800 of wages in the first year
    5. $600 + 8 x $60recruiting cash plus owner interview hours
    6. + $6,000truck, tools and uniform
    7. = $79,880first-year cost
    8. 28 x $110 x 55%billable hours, revenue an hour, margin
    9. = $1,694margin per week when the seat is full

    Get the full plan by email

    Opens on this page the moment you press the button. Print it, save it, or mail a copy to yourself from there.

    Your open-seat cost, first-year cost and payback stay free above.

    • A hire now against wait comparison, week by week
    • A failed-hire scenario with the cost of hiring again
    • A printable one-pager for a partner or your CPA

    Enter your own numbers first.

    The table and plan need JavaScript, because they are built in your browser. Nothing is sent anywhere without it.

    Made with firmkit.co/tools/hiring-cost-calculator/. A planning aid, not accounting or legal advice.

    Details

    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

    AssumptionValueSet by
    Wage, hours, recruiting, equipmentYour numbersYou
    Burden25% as an exampleYou, ask your CPA
    Ramp weeks and speed8 weeks at 50% as an exampleYou
    Billable hours, revenue an hour, marginYour numbersYou
    Work is waitingYes for the open-seat figureYou 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.

    Fix the free things first

    The 60‑second audit looks at your site, your Google profile and your follow-up. Your score shows without an email.