Cost Calculator

Employee vs Contractor vs VA Cost Calculator

See the true loaded cost of each hiring option side by side — including payroll taxes, benefits, and platform fees. Adjust the numbers to match your situation.

Adjust any input in the columns below and costs update instantly. The employee column shows true loaded cost — not just salary.

Full-time

US Employee

Loaded cost including taxes & benefits

Monthly cost —
Annual cost —
Effective hourly —
FICA taxes: —/mo Retirement match: —/mo
1099

US Contractor

No benefits overhead — higher hourly rate

Monthly cost —
Annual cost —
Effective hourly —
—
Offshore

Virtual Assistant

Philippines / India — lowest hourly cost

Monthly cost —
Annual cost —
Effective hourly —
—

Adjust the inputs above to see your comparison.

How it works

The employee column calculates the true loaded cost: base salary plus employer FICA (7.65%), health insurance, retirement match, and equipment — not just the salary number.

The contractor column is simply hourly rate × hours × 4.33 weeks, plus any platform fee if you hire through Upwork or similar. No benefits overhead for you.

The VA column uses the same hourly formula, adds a platform or agency fee percentage, and includes a fixed monthly software cost. The effective hourly shown lets you compare all three on equal footing.

Which option is right for you?

  • US Employee — best for core, strategic roles requiring deep integration with your team and IP.
  • US Contractor — best for specialized short-term projects where you need US-based expertise without a long-term commitment.
  • Offshore VA — best for recurring, process-driven tasks: inbox, scheduling, research, data entry, social posting. Highest ROI for time-poor founders.

FAQ

Common questions about comparing hiring costs.

Why is the employee cost so much higher than their salary?

A US employee's true cost includes employer payroll taxes (7.65% FICA), health insurance contributions, retirement matching, and equipment — typically adding 20–35% on top of base salary.

Does the contractor column account for benefits?

No. US contractors handle their own taxes and benefits. The number shown is your direct cost. Contractors typically charge higher hourly rates to compensate.

What hourly rate should I use for a Philippines VA?

General VA work runs $5–$12/hr. Specialized skills (bookkeeping, social media management, web research) run $10–$20/hr. The default of $8/hr reflects a mid-range generalist.

What does the platform fee cover?

If you hire through a marketplace like Upwork or an agency, they charge a service fee on top of the VA's rate. Direct hires have no platform fee — but involve more vetting work on your end.

Is this calculator accurate for part-time work?

Yes. Set hours/week to whatever you need. For a US employee at part-time hours, note that the salary input assumes full-time — you may want to enter the prorated salary instead.