Work From Home Stipend ROI Calculator

Work-from-home stipends are among the cheapest retention levers in remote-first companies. Typical $1,000/year stipend correlates with 32% higher engagement and 18% lower attrition (Owl Labs 2024). When you net it against real estate savings ($5-12K per seat per year per CBRE), the ROI is almost always 3-10x. This calculator models the full case including equipment and productivity lift.

Why the Math Almost Always Works

Three savings streams cover the stipend cost many times over. Real estate: CBRE data puts the all-in cost per office seat in Tier-1 US cities at $8-15K per year (rent + utilities + janitorial + amenities). Even a 50% hybrid model frees half that for every employee not in-office full-time. Retention: $1,000/year stipend correlates with 18% lower voluntary attrition (Owl Labs), saving 75-150% of salary per retained employee. Productivity: well-equipped home offices show 1.5-3% productivity lift versus under-equipped remote work, where back pain and bad audio cost daily hours.

What to Actually Spend On

Earmarked spend beats cash. Best practice mix: $50-100/month internet allowance (covers business-use portion, generally non-taxable as accountable plan reimbursement); $1,500-2,000 one-time ergonomic chair + standing desk; $200/month co-working pass for employees who need it; $600/year wellness allowance (gym, mental health apps). Tax structure matters: cash stipends are taxable W-2 income. Reimbursements under an accountable plan (with receipts and a clear business connection) are non-taxable — same dollars, but the employee keeps more. Set up the accountable plan with HR and payroll.

Last updated May 2026. Sources: Owl Labs Remote Work, SHRM.