How HR Software Modular Pricing Works
The calculations in this tool demonstrate the "PEPM" (Per Employee Per Month) modular pricing model, which is the industry standard for modern SaaS HR platforms.
Calculation Formula
Monthly Core Cost = Headcount × $6
Monthly Add-on PEPM Costs = Headcount × (Selected Module PEPM rates)
Monthly Flat Costs = Selected Flat Rate Modules (e.g., Payroll Base, ATS)
Total Monthly = Core + Add-ons + Flat Costs
Implementation Estimate = (Total Monthly × 12) × 10% to 20%
Frequently Asked Questions
Most HR software uses a Per Employee Per Month (PEPM) model. You pay a base platform fee (e.g., $40/month) plus a monthly fee for every active employee in the system (e.g., $6/employee/month).
Core HR typically includes an employee database (system of record), basic reporting, document storage, and employee self-service portals. It is the required foundation before adding other modules.
Usually not. Implementation fees are one-time charges ranging from 10% to 30% of your first-year annual contract value. For small businesses, this might be $500, but for enterprises, it can exceed $20,000.
It depends on the vendor. "All-in-one" platforms like Rippling or Gusto often require you to buy Core HR first. "Best-of-breed" point solutions (like 15Five for performance) can be purchased standalone.
HR software pricing usually includes volume discounts. The PEPM cost for a 50-person company might be $8, but that same module might drop to $4 PEPM when you reach 500 employees.
Not always. Payroll is often sold as an add-on module because it carries high compliance risks and requires complex tax filing integrations. Expect to pay an additional $4 to $8 PEPM for payroll.