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Contractor vs Employee Cost — True Annual Comparison

Free contractor vs employee cost comparison. Hourly × hours vs salary × (1 + benefits load). Reveals when contractor really costs more.

Contractor vs Employee Cost Comparison

Employee

Contractor

Employee total cost (annual)

$100,000

Contractor total cost (annual)

$120,000

Contractor − Employee

+$20,000

Headline contractor rates look high but skip the 20-30% benefits load, payroll taxes, equipment, and management overhead of an employee. For short-term or specialised work, contractors usually win on TOTAL cost — for 12+ month engagements, full-time hire normally wins.

About this tool

Why "contractors are expensive" is misleading

Headline contractor rates look high but skip the 20-30% benefits load, payroll taxes, equipment, and management overhead of an employee. For short-term or specialised work, contractors usually win on TOTAL cost. For 12+ month engagements, full-time hire normally wins.

How to use the Contractor vs Employee Cost Calculator

Takes about a minute. No signup, no download, your data stays in your browser.

  1. 1
    Open the tool. Scroll up to the Contractor vs Employee Cost Calculator above — it loads instantly in your browser, no install needed.
  2. 2
    Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
  3. 3
    Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.

Frequently asked questions

Common questions about the Contractor vs Employee Cost Calculator.

Is the Contractor vs Employee Cost Calculator free to use?

Yes. The Contractor vs Employee Cost Calculatoron 7BusyBoss is completely free — no signup, no paywall, no usage cap.

Do I need to sign up to use the Contractor vs Employee Cost Calculator?

No. The Contractor vs Employee Cost Calculatorworks instantly in your browser — no account needed. Signing in with Google is optional and only unlocks features like saving favorites and higher AI build limits.

Does the Contractor vs Employee Cost Calculator work on mobile?

Yes. Every tool on 7BusyBoss is mobile-responsive and works in any modern browser — Chrome, Safari, Firefox, Edge — on phones, tablets and desktops.

Is my data safe when I use the Contractor vs Employee Cost Calculator?

Yes. The Contractor vs Employee Cost Calculatorruns entirely in your browser — your inputs never leave your device unless the tool explicitly fetches public data (e.g. currency rates). We don't store the values you type.

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