Enter all but one of the cost of transportation, cost of temporary housing, cost of home finding, cost of moving belongings, cost of other miscellaneous expenses, and relocation cost multiplier into the calculator to determine the employee relocation cost; this calculator can also evaluate any of the variables given the others are known.

Employee Relocation Cost Formula

The following formula is used to calculate the employee relocation cost:

ERC = (D + T + H + M + O) * R


  • ERC is the employee relocation cost
  • D is the cost of transportation (e.g., flights, moving trucks)
  • T is the cost of temporary housing
  • H is the cost of home finding (e.g., real estate agent fees)
  • M is the cost of moving belongings
  • O is the cost of other miscellaneous expenses
  • R is the relocation cost multiplier (a percentage or decimal value)

To calculate the employee relocation cost, add up the costs of transportation, temporary housing, home finding, moving belongings, and other miscellaneous expenses. Then, multiply the total cost by the relocation cost multiplier.

What is a Employee Relocation Cost?

Employee relocation cost refers to the expenses incurred by a company when moving an employee from one location to another for work purposes. This could be due to a new job assignment, a promotion that requires the employee to work in a different city or country, or the opening of a new office location. The costs can include a wide range of expenses such as moving and transportation costs, temporary housing, job search assistance for an accompanying spouse, cost of living adjustment if the new location is more expensive, and potentially even language training or cultural assimilation classes. The company may also cover the costs of selling the employee’s current home and buying a new one in the new location. The specifics of what is covered can vary greatly depending on the company’s relocation policy and the terms of the employee’s contract.

How to Calculate Employee Relocation Cost?

The following steps outline how to calculate the Employee Relocation Cost:

  1. First, determine the cost of transportation for the employee’s relocation ($).
  2. Next, determine the cost of temporary housing for the employee during the relocation ($).
  3. Next, calculate the cost of meals and incidentals for the employee during the relocation ($).
  4. Next, determine the cost of packing and moving the employee’s belongings ($).
  5. Next, calculate the cost of any additional services required for the relocation, such as storage or pet transportation ($).
  6. Finally, add up all the costs to calculate the total Employee Relocation Cost.

Example Problem:

Use the following variables as an example problem to test your knowledge:

cost of transportation ($) = 500

cost of temporary housing ($) = 1000

cost of meals and incidentals ($) = 200

cost of packing and moving ($) = 300

cost of additional services ($) = 150