Employee vs freelancer cost
Compare the yearly cost of hiring with that of a freelancer for the same work.
How it works
Employee = gross × months × (1 + contributions) + other costs. Freelancer = rate × days. The break-even shows from how many days hiring becomes cheaper.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Employee gross monthly salary3200
- Employer contributions (%)27
- Paid months per year13.92
- Other yearly costs (equipment, training, hiring)6000
- Freelancer day rate450
- Days of work needed per year160
you get:
- Cheapest optionHire an employee
- Difference per year€9,429.12
- Yearly employee cost€62,570.88
- Yearly freelancer cost€72,000.00
Frequently asked questions
How does the “Employee vs freelancer cost” tool work?
Employee = gross × months × (1 + contributions) + other costs. Freelancer = rate × days. The break-even shows from how many days hiring becomes cheaper.
What do I need to enter?
Just fill in: employee gross monthly salary, employer contributions, paid months per year, other yearly costs, freelancer day rate, days of work needed per year. The result updates as you type.
Can you give an example?
Employee gross monthly salary: 3200; Employer contributions (%): 27; Paid months per year: 13.92; Other yearly costs (equipment, training, hiring): 6000; Freelancer day rate: 450 → Cheapest option: Hire an employee; Difference per year: €9,429.12.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.