Free Agency Business Tools
Freelancer vs Employee Cost Calculator
Compare annual freelancer spending with the loaded cost and available capacity of an employee.
What this tool does
The calculator includes salary, employer costs, benefits, equipment, recruitment, utilization, freelancer rate, and demand hours.
Compare annual freelancer spending with the loaded cost and available capacity of an employee.
The calculator includes salary, employer costs, benefits, equipment, recruitment, utilization, freelancer rate, and demand hours.
Use the tool
Compare freelancer and hire economics
Enter the expected annual demand and both cost structures.
Annual demand and cost structures
Live result
Employee costs less
Difference: $15,200
- Annual freelancer spend
- $132,000
- Loaded employee cost
- $116,800
- Usable employee capacity
- 1400 hrs
- Cost break-even
- 1062 demand hrs
How to use it
Three quick steps
- 1Enter the expected annual demand and both cost structures.
- 2Review cost difference, break-even hours, and non-financial considerations.
- 3Verify the result in its real production context. Quality, flexibility, management load, continuity, legal classification, culture, and strategic capability are not reduced to cost.
Worked example
Example: Freelancer-versus-hire Calculator
Compare 1,200 annual specialist hours from a freelancer with one loaded employee role.
FAQ
Questions about the freelancer-versus-hire calculator
Practical details about using the tool and understanding its result.
Keep working
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