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At what workload does a permanent hire beat subcontracting?

Compare utilization-dependent contractor cost with a loaded employee and recruiting investment.

Example scenario

Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.

Annual productive delivery hours required
1,200
Subcontractor cost / productive hour
$120
Annual loaded employee cost
$130,000
One-time recruiting & onboarding
$18,000
Annual employee equipment & tools
$6,000
First-year savings from permanent hire-$10,000

Example result only, not a forecast or promise.

Subcontractor annual cost
$144,000
Permanent first-year cost
$154,000
Break-even productive hours
1,283.3

What to do with this result

Check skill availability, peak demand and employment classification separately; this model compares delivery costs, not legal status.

Know what is inside the model.

Planning model, not personalized financial advice. Your inputs remain in your browser.

Calculation method

Subcontract cost = required productive hours × contractor hourly rate. Employee first-year cost = loaded employment + recruiting + tools.

Assumptions and limitations

  • Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
  • Use collected revenue and fully loaded delivery costs consistently. Released time is capacity, not automatically a cash saving.

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