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Onboarding Cost Calculator

Calculate the cost of onboarding a new employee: equipment and software, paperwork, training, the hours managers and teammates spend helping, and the output lost while the new hire ramps up.

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How to calculate onboarding cost

Onboarding cost = cash costs (equipment, paperwork, training) + time costs (manager and team hours, plus output lost while the new hire ramps up). Time is priced at loaded pay: salary plus benefits and payroll taxes. With the defaults below, onboarding one US software developer on a $135,980 salary costs about $31,800, or 23% of salary, and most of it is time rather than cash.

1. The new hire

$

US median, software developers

Each at the same salary

2. Cash costs per hire

$

Laptop, monitor, licenses

$

Background check from $59.99

$

US average per learner, 2025

3. Time costs per hire

hours

Setup, reviews, pairing

weeks

Weeks to full output

Average over the ramp

Cost to onboard one hire

$0

Share of salary

0%

Total for all hires

$0

Cash costs

$0

Equipment and software$0
Paperwork and checks$0
Training$0

Time costs (0% of the total)

$0

Manager and team time$0
Output lost while ramping$0

Time is priced at loaded pay: salary divided by 69.2%, the wage share of total compensation (BLS Employer Costs for Employee Compensation, June 2026), over 2,080 hours a year. Training: Training magazine 2025 Training Industry Report. Background check: Checkr pricing page. Equipment, hours, ramp-up and output lost are assumptions you can change.

Onboarding through Second Talent

Recruiting, the employment contract, payroll and compliance are covered in one rate of $29 to $39 USD an hour, billed monthly ($4,599 to $5,999 for 160 hours), with $0 cost until you hire and a 90-day, one-time replacement guarantee. Your team still spends time bringing the engineer into your codebase, so keep the hours and ramp-up lines in your plan.

Onboarding cost questions, answered

How do you calculate onboarding costs?
Add the cash costs to the time costs. Onboarding cost per hire = equipment and software + paperwork and checks + training + (manager and team hours × loaded hourly pay) + (ramp-up weeks × loaded weekly pay × share of output lost). Loaded pay is salary divided by 69.2%, the wage share of total compensation for professional workers in private industry (BLS Employer Costs for Employee Compensation, June 2026). On a $135,980 salary that is $94.47 an hour or $3,779 a week.
What is the cost of onboarding a new employee?
For a US software developer at the $135,980 median salary (BLS Occupational Employment and Wage Statistics, May 2025), about $31,800 with the calculator's defaults: $2,500 of equipment and software, $60 for a background check, $874 of training, $5,668 of manager and team time (60 hours) and $22,673 of output lost over a 12-week ramp-up. Only about $3,400 of that is cash; the rest is time. The cost scales with salary, so change it to match the role.
What is the average onboarding cost per employee?
There is no current, independent US survey of onboarding cost on its own, so be careful with figures quoted without a source. The closest benchmarks measure parts of it. SHRM's 2025 median cost per hire, $1,200 for nonexecutive roles and $10,625 for executives, covers recruiting (agency fees, job ads, recruiter pay), not onboarding (SHRM 2025 recruiting benchmarking). Training magazine puts training spend at $874 per learner in 2025 (Training magazine 2025 Training Industry Report). The calculator adds the rest from your own numbers.
What costs are included in onboarding?
Equipment and software licenses, background checks and employment paperwork, training courses, the hours managers and teammates spend on setup, reviews and pairing, and the output the new hire has not yet reached while learning the job. The last two are easy to miss because nobody invoices them, but they are usually the largest.
How much does it cost to train a new employee?
US companies spent $874 per learner on training in 2025, up from $774 in 2024, and employees received 40 hours of training a year. The survey covered US corporations and educational institutions with 100 or more employees, from April to July 2025 (Training magazine 2025 Training Industry Report).
How much does a background check cost?
Checkr lists $29.99 per report for its Basic check, $59.99 for Essential and $94.99 for Complete, with some court and database fees passed through at cost (Checkr pricing page). The calculator defaults to $60.
How long does it take a new hire to become fully productive?
It depends on the role, the codebase and how much support the hire gets, and there is no reliable single figure. The calculator assumes 12 weeks at 50% average output; change both to match what you see. At the default salary, cutting ramp-up from 12 weeks to 6 saves about $11,300 per hire.
Is onboarding cheaper through Second Talent?
Second Talent helps US startups hire vetted AI-Native Engineers and Specialists from Asia. Recruiting, the employment contract, payroll and compliance are included in one rate of $29 to $39 USD an hour, billed monthly ($4,599 to $5,999 for 160 hours), with $0 cost until you hire and a 90-day, one-time replacement guarantee. Your team still onboards the engineer into your codebase, so plan those hours either way.
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