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Employee vs contractor cost calculator

True cost of each hiring route.

Built and reviewed by Dovanic, Founder and editor, FreeByteLast reviewed: 2026-08-18
$
28%
$

Employee is cheaper

$8,200

Employee true cost

$108,800

With these inputs, employee is cheaper comes to $8,200. Employee true cost works out to $108,800. The result assumes contractor day rate stays at 650%.

Contractor cost
$117,000
Break-even contractor days
167

What moves the number · Employee is cheaper

Input−10%Now+10%
Employee salary$19,080$8,200$2,680
Employer on-costs$10,580$8,200$5,820
Contractor day rate$3,500$8,200$19,900
Contractor days$3,500$8,200$19,900

Solve for an input

Whatmakesequal

Compare scenarios

Save this set of inputs, change something, then save again to compare the outcomes side by side.

True cost of each hiring route.

A worked example

Starting figures

Employee salary
$85,000
Employer on-costs
28%
Contractor day rate
$650
Contractor days
180

What it returns

Employee is cheaper
$8,200
Employee true cost
$108,800
Contractor cost
$117,000
Break-even contractor days
167

How to read the results

With the defaults above, employee is cheaper works out at $8,200.

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