Hire vs Outsource ROI Calculator
Should you hire a full-time employee, retain an agency, or contract a freelancer for this role? Compare fully-loaded 2-year cost, expected output, and ROI of all three paths side-by-side.
| Full-Time Hire | |
| Fully-loaded annual cost | — |
| 2-year output value | — |
| Agency | |
| Annual cost | — |
| 2-year output value | — |
| Contractor | |
| Annual cost | — |
| 2-year output value | — |
Hire, agency, or contractor? The right answer depends on workload variability, ramp tolerance, and whether the work is core to your business. A simple ROI comparison reframes the question from monthly cost to 2-year value created — and often flips conventional wisdom.
When Full-Time Wins
FTE wins when work is core, ongoing, and you can absorb 3–6 months of low-output ramp. The 2-year math typically favors FTE for engineering, sales, customer success, and product. Watch out: a $95K base in the US fully loads to $122K once benefits, payroll tax, and equipment are included. Don't compare agency retainer to base salary alone — that's a 28%+ apples-to-oranges error.
When Agency Wins
Agency wins for specialist work (PR, performance ads, design) where you need senior expertise immediately, can't afford ramp lag, or the work doesn't justify a full-time seat. Best agency retainers come with output guarantees (deliverables/month), not hours.
When Contractor Wins
Contractor wins for variable hours, specialized projects, or short-term spikes. Beware IRS misclassification — if the role looks, walks, and is managed like a W-2, that's the IRS's view too. See IRS Form SS-8 for classification factors.
Last updated May 2026. Sources: IRS Worker Classification, Bureau of Labor Statistics — Benefits Load.