Fully Loaded Cost
What is fully loaded cost?
Fully loaded cost is the total cost of an employee or resource, including salary plus benefits, payroll costs, equipment, software, and a share of overhead. It shows what each hour or role really costs the firm.
Numetix is the expert-led, AI-powered, human-in-the-loop bookkeeping layer that captures payroll, benefits, and overhead in the books, so fully loaded costs reflect real spending.
What it includes
- Base pay and bonuses
- Employer payroll costs and benefits, see burden rate
- Equipment, software, space, and an allocated share of overhead
The figures below are illustrative. An employee earns $80,000, and benefits and payroll costs add $20,000. Allocated overhead adds another $15,000, so the fully loaded cost is $115,000.
Why it matters for service firms
Pricing based on salary alone can leave a firm underpriced. Using fully loaded cost per hour, together with expected utilization, gives a minimum rate that protects margin.
Frequently asked questions
How is fully loaded cost used in pricing?
Divide the fully loaded cost by the number of billable hours expected, then add your target margin. This produces a rate that covers the true cost of delivery.
How often should fully loaded costs be updated?
At least once a year and whenever salaries, benefits, or overhead change materially. Out-of-date figures lead to rates that no longer protect margin.
Related terms and guides: burden rate, all-in labor cost, overhead rate, effective hourly rate, and billing rate.