Payroll Cost Calculator UK 2026: Estimate Monthly Payroll Fees Quick answer
Payroll costs in the UK depend on how many employees you pay, how often you run payroll, whether you need pension auto-enrolment, CIS, payslips, HMRC submissions, year-end reports, HR support or fully outsourced payroll.
Use our payroll cost calculator below to estimate your monthly payroll cost, annual cost, cost per employee and whether payroll software or outsourced payroll is likely to be better for your business.
Payroll Cost Calculator UK Estimate your monthly payroll cost based on employee numbers, pay frequency, pension duties, CIS, payslips, reports and support level.
Pay frequency
Monthly Weekly Fortnightly Four-weekly Mixed payroll frequencies Weekly payroll usually costs more because it runs more often.
Payroll service type
Payroll software only Managed payroll service Fully outsourced payroll Payroll bureau / accountant Software is usually cheaper; outsourced payroll gives more support.
Business type
Office / admin business Retail / shop Hospitality / restaurant / café Construction / trades Care / healthcare Agency / variable staff Professional services Multi-site business Variable hours, shifts and CIS can increase payroll complexity.
Need workplace pension / auto-enrolment support?
No Basic pension submissions Full auto-enrolment support Includes pension assessment, contributions or pension file uploads.
Need CIS payroll?
No Yes, include CIS Useful for construction businesses paying subcontractors.
Variable pay complexity
Low: fixed salaries Medium: overtime / bonuses High: shifts, tips, commissions or allowances Hospitality, retail and sales teams often need more checks.
Payslip delivery
Digital payslips Employee portal Printed payslips Printed payslips can add admin and postage costs.
Need HR support?
No Basic HR advice Payroll + HR support Useful if you need contracts, absence, holiday or employment advice.
Reporting level
Basic payroll reports Management reports Advanced reports / costing / departments Departmental reporting can be useful for larger teams.
Need year-end support?
Yes No Includes end-of-year payroll checks and employee documents where relevant.
Setup / migration needed?
No setup needed Standard setup / migration Complex migration / multiple payrolls Changing provider mid-year may require extra setup.
Your estimated payroll costs
Estimated monthly cost
£0
Cost per employee/month
£0
Potential monthly saving
£0
Enter your payroll requirements to estimate your costs.
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This calculator is an estimate only. Actual payroll costs vary by provider, employee count, pay frequency, payroll complexity, pension duties, CIS, HR support, setup, integrations, reporting and service level.
Key takeaways
Payroll costs depend on employee count, pay frequency, complexity and support level.
Weekly payroll usually costs more than monthly payroll because it is processed more often.
Payroll software is usually cheaper, but managed or outsourced payroll can reduce admin and compliance stress.
Pension auto-enrolment, CIS, starters, leavers, variable pay and HR support can increase payroll costs.
Compare cost per employee as well as the total monthly fee.
How much does payroll cost?
Payroll option Typical cost basis Best for
Payroll software
Monthly software fee plus possible per-employee cost
Small businesses comfortable running payroll internally
Managed payroll service
Monthly fee plus per-employee or per-payslip charge
SMEs wanting payroll processed with support
Fully outsourced payroll
Higher monthly cost, more provider involvement
Businesses wanting payroll handled externally
Payroll bureau or accountant
Usually charged by employee, payroll run or service level
Small businesses wanting a practical external service
Payroll + HR support
Payroll fee plus HR advice or software fee
Businesses needing staff admin, holidays, contracts or absence support
Best payroll option by business type
Business type Best payroll option to compare first Why
Very small business Payroll software or accountant payroll
Simple monthly payroll may not need a full outsourced service
Office business
Managed payroll
Good for regular salaries, pensions, payslips and HMRC submissions
Retail business
Managed payroll or outsourced payroll
Useful for part-time staff, starters, leavers and variable hours
Restaurant or hospitality business
Outsourced payroll
Useful for shifts, tips, variable hours, holiday pay and frequent staff changes
Construction business
CIS payroll provider
Useful for subcontractor verification, CIS deductions and employee payroll
Care or healthcare business
Outsourced payroll
Useful for shifts, overtime, allowances and compliance-heavy payroll
Multi-site business
Outsourced payroll or payroll software with reporting
Useful for departments, locations, approvals and management reports
Payroll software vs outsourced payroll
Feature Payroll software Outsourced payroll
Monthly cost
Usually lower
Usually higher
Admin responsibility
You handle more internally
Provider handles more for you
Best for
Small, simple payrolls
Complex, growing or time-poor businesses
Pensions
Often available, but you manage settings
Often supported as part of the service
CIS
May be available on some plans
Often better for construction payroll complexity
Support
Software support
Payroll processing support
When should you compare payroll providers? You should compare payroll providers if:
you are hiring your first employee
you are spending too much time running payroll manually
your payroll has become more complex
you have weekly or variable payroll
you need pension auto-enrolment support
you need CIS payroll
you are getting payroll errors or late submissions
you need better employee payslips or reports
your current payroll provider is too expensive
you want payroll and HR support together
Compare Payroll Providers
Payroll providers to compare
Provider type Best for What to compare
Payroll software providers
Small businesses running payroll internally
Monthly fee, employee limits, pension tools, HMRC submissions and support
Managed payroll providers
SMEs wanting payroll processed with support
Per-employee fees, payroll runs, pensions, reports and service level
Payroll bureaus
Businesses wanting external payroll without enterprise software
Payslip fees, submission support, payroll queries and year-end work
Accountants offering payroll
Small businesses already using an accountant
Monthly payroll fee, bundled accountancy services and response times
Payroll + HR providers
Businesses needing staff admin support
Payroll, HR advice, contracts, absence, holiday and employee documentation
CIS payroll providers
Construction and trades businesses
CIS verification, deduction statements, subcontractor reporting and payroll support
How to reduce payroll costs
Compare payroll providers before renewing or switching software.
Choose payroll software if your payroll is simple and you can manage it internally.
Outsource payroll if errors, admin time or complexity are costing more than the provider fee.
Use digital payslips instead of printed payslips.
Keep employee data accurate to avoid rework.
Review whether you need full HR support or payroll only.
Check whether pension submissions are included.
Choose a provider that understands your sector if you have CIS, shifts or variable pay.
Compare first-year setup fees as well as monthly costs.
What to check before choosing a payroll provider
Is pricing per employee, per payslip or per payroll run?
Are HMRC submissions included?
Are pension submissions included?
Does it support weekly payroll?
Does it support CIS?
Are starters and leavers included?
Are year-end reports included?
Are digital payslips included?
Is employee self-service available?
Can it handle overtime, bonuses, tips and commissions?
Does it integrate with accounting software?
Does it include HR support?
What is the setup or migration fee?
What support is available before payday?
Why compare payroll providers? Payroll pricing can be hard to compare because providers charge in different ways. Some charge by employee, some by payroll run, some by service level and some by software plan. A cheap payroll option may be enough for a simple business, but a more supported service may be better if payroll mistakes are taking too much time.
Comparing providers helps you check:
monthly payroll cost
cost per employee
setup fees
pension auto-enrolment support
CIS support
weekly payroll pricing
payslip delivery
HR support
reporting options
first-year total cost
Why compare with Compare Your Business Costs? Compare Your Business Costs helps UK businesses compare payroll providers based on employee count, pay frequency, payroll complexity, pensions, CIS and support needs.
You can compare:
payroll software
managed payroll services
outsourced payroll providers
payroll bureaus
CIS payroll providers
small business payroll
weekly payroll services
payroll with HR support
payroll for hospitality
payroll for construction
Verdict: how much will payroll cost? Your payroll cost depends mainly on employee count, pay frequency, service type, pensions, CIS, payroll complexity, payslip delivery, reporting and support. Payroll software may be enough for very small businesses, while managed or outsourced payroll is often better for growing teams, weekly payroll or businesses with complex staff pay.
Final recommendation: use the calculator above to estimate your monthly and first-year payroll costs, then compare providers based on the level of support your business actually needs.
FAQs: payroll cost calculator How much does payroll cost in the UK?
Payroll costs vary depending on employee numbers, pay frequency, software or outsourcing, pensions, CIS, reporting and support. Very small businesses may use low-cost payroll software, while outsourced payroll usually costs more.
How do I calculate payroll service costs?
Start with the monthly software or service fee, add any per-employee or per-payslip charges, then include pensions, CIS, setup, reporting and HR support where needed.
Is payroll software cheaper than outsourced payroll?
Payroll software is usually cheaper, but outsourced payroll can save time and reduce admin if payroll is complex or you do not want to manage submissions internally.
Does weekly payroll cost more?
Usually, yes. Weekly payroll requires more frequent processing than monthly payroll, so providers often charge more for weekly pay runs.
Do payroll providers handle HMRC submissions?
Many payroll providers and payroll software systems support HMRC submissions, but the exact service depends on the provider and plan.
Do payroll providers handle pension auto-enrolment?
Many providers support pension assessment and pension submissions, but you should check whether this is included or charged separately.
What is CIS payroll?
CIS payroll is payroll support for construction businesses that need to verify subcontractors, apply deductions and report under the Construction Industry Scheme.
Can payroll providers help with HR?
Some payroll providers also offer HR support, including contracts, holiday, absence, employee queries and employment documentation.
What is the cheapest payroll option?
The cheapest option is usually payroll software for a small, simple monthly payroll. However, the cheapest option may not be best if you need support, pensions, CIS or complex payroll processing.
Can I compare payroll providers for free?
Yes. You can compare payroll providers based on employee count, pay frequency, service type, pensions, CIS, HR support and budget.
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: July 2026
Related Payroll & HR Guides If you’re researching payroll services, the guides below explore specific providers, compliance topics, and specialist use cases in more detail.
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If you’re comparing payroll software instead of outsourcing:
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For larger organisations and complex payroll structures:
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Industry-specific and niche payroll guidance:
Payroll Compliance & HMRC Guidance
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Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
