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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
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.