Free Tool

Employee vs. Subcontractor Cost Calculator

Wage and rate aren't the whole story on either side. Fill in both panels for the same volume of work to compare true annual cost.

Employee

Wages plus payroll tax, insurance, and any benefits you cover.

Hourly wage ($)Hours / weekWeeks / yearPayroll tax burden (% of wages)Workers' comp / insurance (% of wages)Benefits ($/year)

True annual cost - employee

Subcontractor

Use the same annual hours as the employee panel for a fair comparison.

Sub's rate ($/hour)Hours needed / year

True annual cost - subcontractor

Difference

This is a cost comparison only - it doesn't account for reliability, availability, quality, or how easily you can scale each option up or down with demand, all of which matter as much as the dollar figure. It also doesn't cover misclassification risk; employee-vs-contractor status is a legal determination, not just a pricing choice.

Price and track either way, in one place

Punchlist tracks labor cost against real job margins whether that labor is an employee or a sub, so the comparison stays current as your crew mix changes.