Methodology: Team Salary Budget Calculator

1. Scope

Allocates a salary budget across roles with midpoint estimates and tracks budget utilisation. It does not benchmark role-level pay against market data — use BLS OEWS or Levels.fyi for that.

2. Inputs and outputs

Inputs

totalBudget number (currency/year)
roles array

Each: title, headcount, midpointSalary, rangePercent.

Outputs

perRoleSpend

midpoint × headcount.
totalPlannedSpend

sum of per-role spend.
utilisation

planned / budget.

Engine source: src/lib/team-salary-budget-calculator/engine.ts

3. Formula / scoring logic

per_role_spend = midpoint * headcount
total_planned  = sum(per_role_spend)
utilisation    = total_planned / total_budget

4. Assumptions

Midpoint salary is base salary only — bonuses and equity are not bundled.
Range percent (±10–30%) is bookkeeping, not an automatic budget buffer.

5. Data sources

US BLS Occupational Employment and Wage Statistics (OEWS) as of 2024

6. Known limitations

Fully-loaded cost (tax, benefits, overhead) requires a separate multiplier — see the Employee Cost Calculator.
Geography-specific pay is not modelled; the tool takes midpoint at face value.

7. Reproducibility

Input
budget = $500,000; roles = [{Eng, 2, $120k}, {Sales, 1, $100k}, {Marketing, 1, $90k}].

Expected output
planned = $430,000, utilisation = 86%.

8. Change log

2026-04-24 methodology page first published.