MasterBizcalc
Employee vs Contractor
Compare by:
Employee
Contractor
Breakdown
Employee
Contractor
Base Hourly Rate
$0.00
$0.00
On-Costs / Hour
$0.00
—
Overhead / Hour
$0.00
—
Other Cost / Hour
—
$0.00
Cost / Hour
$0.00
$0.00
Charge-Out Rate
$0.00
$0.00
Margin (%)
0.0%
0.0%
Profit / Hour
$0.00
$0.00
Hours / Year
0 hrs
0 hrs
Annual Cost
$0.00
$0.00
Annual Profit
$0.00
$0.00
Hourly Difference
+$0.00
Annual Difference
+$0.00
Cheaper Option
Equal
Summary Report
At the current inputs the employee and contractor cost the same — $0.00/hr and $0.00/yr. The employee's fully-loaded rate of $0.00/hr is built from a base of $0.00/hr plus on-costs of $0.00/hr (0.0%) and overhead of $0.00/hr (0.0%). The contractor's $0.00/hr combines a base of $0.00/hr.
Employee
$0.00/hr fully-loaded · $0.00/yr at 0 billable hrs · charges out at $0.00/hr.
Contractor
$0.00/hr · $0.00/yr at 0 billable hrs · charges out at $0.00/hr.
- On-costs and overhead add $0.00/hr (0.0%) on top of the employee's base rate — the hidden cost of a salaried role.
- The contractor carries no on-costs or overhead; only the agreed rate applies.
- Contractor hours are flexible — idle time costs nothing, whereas a salaried employee is paid for billable hours regardless of utilisation.
- At the current hours, choosing the equal saves $0.00 per year.
Understanding Your Results
Both options cost the same at current inputs ($0.00/yr).
Pros / Strengths
- +Contractor rate ($0.00/hr) beats the employee's fully-loaded cost ($0.00/hr).
- +Comparing fully-loaded costs (incl. on-costs of $0.00/hr and overhead of $0.00/hr) avoids underestimating the employee.
Cons / Risks
- !Employee on-costs add 0.0% ($0.00/hr) on top of the base rate — often missed in simple comparisons.
- !Contractor cost scales linearly with hours — idle hours cost nothing, unlike a paid employee.
- !Margin settings affect charge-out rates but not the raw cost comparison shown above.