Compare the true cost of hiring an employee versus engaging a contractor. See side-by-side annual, monthly, daily, and hourly costs with detailed breakdowns. Educational use only, not legal, tax, HR, financial, or investment advice.
Enter employee and contractor costs
Enter employee compensation details (salary, bonus, taxes, benefits) and contractor terms (hourly rate, hours, weeks) to see a detailed cost comparison.
Fill in the form and click "Compare Costs" to see results
Hiring decisions involve more than just comparing salaries to hourly rates. Employees come with hidden costs like payroll taxes, benefits, and retirement contributions that can add 20-40% on top of base salary. Contractors may charge higher hourly rates but don't require benefits or employer-side taxes. This calculator helps you see the true total cost of each option.
Cost is only one factor in the contractor vs employee decision. Consider these additional factors:
Disclaimer: This calculator is for educational purposes only. It provides a simplified cost comparison and does not account for legal classification rules, local tax laws, or employment regulations. Consult with HR, legal, and tax professionals before making hiring decisions.
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