Contractor vs employee cost comparison
Use this calculator to compare the costs of hiring a contractor versus an employee and make an informed decision for your business.
Want to switch to an all-in-one payroll and HR platform?
Contractor vs employee cost comparison FAQs
Disclaimer: This calculator provides a general cost comparison between contractors and employees. Estimates do not include all possible expenses, such as legal compliance, insurance, or taxes. For personalized advice, please consult your legal or financial advisor.
What does this calculator compare?
It calculates the total cost of hiring a contractor versus an employee, including wages, benefits, and admin expenses over time.
What’s included in employee costs?
Hourly wages, estimated benefits (like insurance and PTO), and optional admin or payroll costs.
What’s the advantage of using contractors?
Contractors offer flexibility and may save on benefits and administrative overhead.
What’s the downside of relying on contractors?
They often cost more per hour, can create misclassification risks, and may be harder to retain.
How do I decide between a contractor and an employee?
Compare the total costs and consider compliance, business needs, and long-term growth plans.