Tool
Hiring cost calculator
By Umair Nawaz, founder of Lirevon Updated How we test tools
Before you hire a climber, a groundsman, a crew leader or someone for the office, see what they really cost a year. Then see how many jobs a month it takes to pay for them at your job value and margin.
Terms used here: workers' compensation, payroll tax, independent contractor, help for growing tree companies.
True cost, first year
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Per month
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Cost per billable hour
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Jobs a month to pay for this hire
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Where the money goes (first year)
Office person vs text-back + AI receptionist
Office person, first year
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Covers their working hours.
Lirevon Core, first year
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$497/month + $997 setup. Works outside your hours too, with 300 AI minutes a month included.
Fair warning: software answers and replies to calls, takes details and books estimates. It does not do invoicing, handle a hard conversation or make judgment calls. The AI receptionist tells callers it is an automated assistant. Phone carrier fees are billed at cost and are not included.
Estimate only. Not tax, payroll or insurance advice. Your accountant and insurance agent have the real numbers.
How the math works
- Wages = (wage × hours + 1.5 × wage × overtime hours) × paid weeks.
- Payroll taxes = wages × tax %. Workers' comp = wages ÷ 100 × your comp rate.
- True cost = wages + payroll taxes + workers' comp + benefits × 12 + equipment and PPE + one-time hiring costs.
- Billable hours = (hours + overtime) × (paid weeks − training weeks) × billable share. Cost per billable hour = true cost ÷ billable hours. For office roles it shows cost per hour worked instead.
- Jobs a month to pay for the hire = (true cost ÷ 12) ÷ (job value × margin %).
- The office comparison uses your numbers when the role is Office / dispatcher. For other roles it uses the office example wage with your tax, benefits and weeks.
Questions people ask
What payroll tax percentage should I use?
Employer Social Security and Medicare add 7.65% of wages. State and federal unemployment taxes come on top, and the rates depend on your state and history. Your payroll provider or accountant can give you the exact number.
Why is workers' comp such a big number for tree work?
Tree trimming and removal are rated as high-risk work, so the rate per $100 of payroll is usually much higher than for office staff. It varies a lot by state and class code. Ask your insurance agent for your rate; do not rely on the example in the form.
What is a billable hour?
An hour the worker spends on a job you get paid for. Drive time, loading, equipment repair, rain days and training are paid but not billed. If you do not know your share, start with your best guess and check it against a month of timesheets.
How are training weeks counted?
They are paid weeks with little or no billable work. The calculator removes them from the billable hours, which raises the cost per billable hour in the first year.
What margin should I enter?
The share of a job's price left after fuel, dump fees, equipment wear and materials, before you pay this new hire. Use your own books. If you are not sure, run the calculator with a low and a high guess.
Can text-back and an AI receptionist replace an office person?
Not fully. They answer and reply to missed calls, take details and book estimates at any hour. A person also handles invoicing, scheduling changes, upset customers and judgment calls. For many small crews the software covers the calls and the owner covers the rest.
Is anything I type sent to Lirevon?
No. The calculator runs in your browser. Your inputs are saved on this device only so they are still here next time.
Where do the Lirevon prices come from?
From our pricing page: Core is $497 a month plus a $997 setup fee. Phone carrier fees for the texting number are billed at cost and are not in this comparison.
Should I hire an employee or use a subcontractor?
That is not a free choice. Whether a worker counts as an employee or a contractor depends on federal and state rules about how the work is done. Short explanation, not legal or tax advice. Ask your accountant or insurance agent before you decide.
How do I know if I can afford a hire?
Compare the yearly cost with the extra jobs the hire lets you do. This calculator shows the jobs a month needed to cover the cost at your job value and margin. If you cannot win that many more jobs, the hire may not pay for itself yet.
Related free tools
- Storm capacity planner: whether your crews and office can keep up in a storm week.
- Speed-to-lead calculator: what slow replies cost you each month.