General Business · Business · Calculator
Employee vs Contractor Cost Calculator
Compare the estimated annual cost of hiring an employee with paying an independent contractor for the same work.
How to use this Employee vs Contractor Cost Calculator
Compare the estimated annual cost of hiring an employee with paying an independent contractor for the same work. Enter your numbers above and Okomit calculates the result instantly.
Employee vs Contractor Cost Calculator formula
Employee Cost = Wages × (1 + Burden Rate); Contractor Cost = Hourly Rate × Annual Hours
Example
Compare the fully loaded employee cost with the contractor spend required for the same estimated hours of work.
How to use the result
Cost is only one factor. Classification rules, control, availability, benefits, equipment, risk, and continuity also matter.
Frequently asked questions
Is this calculator free?
Yes. This Okomit calculator is available as a free tool.
Does Okomit save the numbers I enter?
Guest calculations remain in the browser unless you choose a feature that explicitly saves work. Logged-in Okomit features may support saved scenarios where available.
Can I use this for business planning?
Yes, as a planning aid. Review important business, tax, legal, lending, or accounting decisions with the appropriate professional when needed.