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Cost of a sales hire calculator
Put in the package, the one-off costs and how fast a new account executive ramps. See the fully loaded cost, the month they pay for themselves, and what it costs you if they miss.
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Fully loaded year-one cost, line by line, with 2026/27 employer NI
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A payback chart of cost against gross profit from their customers
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Attainment scenarios and the cost of a mis-hire
How to use it
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Enter base salary, OTE, pension, benefits and the recruiter fee.
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Add monthly running costs such as software, travel and management time.
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Set quota, attainment, when they sign their first deal and when they are fully ramped.
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Check the payback month, then use the scenarios and mis-hire section to test the downside.
How the numbers work
Cost is worked out month by month for three years: base salary, commission, employer NI at 15% of monthly pay above £417 (2026/27), pension, benefits, one-off hiring costs and running costs.
Each deal starts earning its ARR divided by 12 the month after it is signed, less churn, and pays you back at your gross margin. Payback is the first month the running total of gross profit passes the running total of cost, the same idea as a CAC payback period for one hire.
Questions
How much does it cost to hire a salesperson in the UK?
Far more than their salary. As well as base and commission you pay employer NI, pension, benefits, recruiter fees, equipment, software and management time. In the example, an AE on £60,000 base and £120,000 OTE costs about £159,000 in year one.
How long does it take a new AE to pay for themselves?
It depends on ramp time, attainment, deal size and gross margin. In the example it takes 18 months in gross profit, even though they sign enough new ARR to cover their cost by month 6. Many SaaS investors look for payback within 24 months.
Does employer National Insurance apply to commission?
Yes. Commission is earnings for National Insurance, so employer NI at 15% applies to pay above the secondary threshold of £5,000 a year (£417 a month) in 2026/27.
What does a bad sales hire cost?
Most of the cost is fixed, so a hire who underperforms costs almost as much as one who hits target. The mis-hire section shows the gap left if you part ways at a given month, before the cost of hiring again and another ramp.
More free sales tools
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Sales Hiring Plan: How many AEs and SDRs you need to hit your ARR target, and when to hire them.
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CAC Payback Calculator: What a customer costs to win, and how many months until they have paid it back.
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Understand Your Commission Plan: Model any commission plan and see your earnings and UK take-home at any attainment.
Hiring your first AEs?
The cost is mostly fixed; the payback depends on the process, pipeline and plan you give them. We help early-stage teams get those in place before the hire starts.