EOR Cost Calculator
Compare hiring through an Employer of Record against setting up your own local entity — and find the headcount where an entity becomes cheaper. Enter amounts in any single currency.
EOR vs local entity — how the cost works
The salary and statutory employer contributions are the same whether you hire through an EOR or your own entity — so the real comparison is the EOR’s per-employee service fee versus the fixed annual cost of running a local entity (incorporation, accounting, payroll provider, filings, and local compliance).
Because the EOR fee scales with headcount while entity overhead is largely fixed, EOR is typically cheaper for your first few hires and an entity wins once you reach a certain headcount. That tipping point is the break-even headcount the calculator shows.
Employer of Record providers
Partner · we may earn a commissionHire and pay international contractors and employees compliantly, with built-in contractor agreements and EOR coverage in 150+ countries.
Employer of record and contractor management across 80+ countries, with localized contracts and benefits.
Unify HR, payroll, and IT for US and global teams — including worker classification and compliance workflows.
Frequently asked questions
An EOR is a company that legally employs workers on your behalf in a country where you have no local entity. It runs payroll, withholds taxes and social contributions, and handles compliance, while you direct the day-to-day work — usually for a flat monthly fee per employee.
An EOR charges a per-employee fee with no fixed overhead, so it is usually cheaper for a small number of hires. A local entity has fixed annual costs (accounting, payroll, filings) that only pay off at scale. The break-even point is where the entity’s fixed cost equals the total EOR fees.
EOR fees are commercial, not statutory, and typically run from roughly $400 to $700 per employee per month, or a percentage of salary. They are separate from the salary and employer social contributions, which you pay either way.
A PEO co-employs staff within your own entity (common in the US), while an EOR is the full legal employer in a country where you have no entity. For hiring abroad without a subsidiary, you generally need an EOR.
EOR fees and entity costs are commercial estimates you control — there is no statutory figure. See how we build our tools on our methodology page.