Free Tool
Break-Even
Calculator
Worried about switching costs? See exactly which month outsourcing starts saving you money — and how much you save by year-end.
Break-Even
Month 1
Monthly Savings
$5,499
Year 1 Net Savings
$62,992
Cumulative Savings — Month by Month
Monthly Cost Comparison
Local Hire
$7,083/mo
Zedtreeo
$1,584/mo
Zedtreeo rates from $1,056/month. Transition costs are one-time. Savings compound monthly.
Break-Even FAQs
Understanding the switch to remote staffing.
Transition costs include: training time for the new remote hire (documenting processes, video walkthroughs), any overlap period where you pay both the outgoing and incoming person, and tool/license setup costs. For most roles, this ranges from $1,000 to $5,000 — a one-time cost that's recovered within 1-3 months.
Even better — set the 'local salary' to what you'd pay for that role locally. The calculator shows what you'd save by hiring remotely through Zedtreeo instead. With no transition cost (set it to $0), you start saving from day one.
The local salary input should include total compensation (salary + benefits + payroll taxes + overhead). For a fair comparison, add 25-40% on top of base salary to account for healthcare, 401k, payroll taxes, and office costs. Zedtreeo's rate includes everything.
For most professional roles (developers, marketers, accountants), clients break even within 2-3 months. The higher the local salary, the faster the break-even. Some enterprise clients with $120k+ local salaries break even in month 1.
Zedtreeo's candidates are pre-vetted before you see them. The free 5-day trial lets you verify quality before committing. Most clients report their remote staff reaching full productivity within 2-3 weeks — faster than a typical local new hire.
If your local salary is already very low (under $30k/year for the role) or if the role requires physical presence, outsourcing may not make financial sense. The calculator accounts for this — if Zedtreeo's rate exceeds your local cost, it will show clearly.
Methodology
How the Break-Even Calculator works
How the number is produced
- Local monthly = the local salary you enter ÷ 12; Zedtreeo monthly = role rate × experience multiplier × 176.
- Monthly savings = local − Zedtreeo; break-even = transition cost you enter ÷ monthly savings.
- Year-one savings = monthly savings × 12 − transition cost.
Assumptions built in
- Uses salary only for the local side; add ~30% if you want loaded cost.
- Transition cost is whatever you enter (handover, tooling, overlap period).
Benchmarks & sources
- Zedtreeo Rate Index (2026)Used for: the offshore hourly rate per role used on the Zedtreeo side of every comparison — the same figures quoted on our service pages.
- Zedtreeo pricing engine (site-wide constants) (2026)Used for: 176 billable hours per full-time month; local-market multipliers of ~3.5× (US), ~3.0× (Europe avg.), ~3.2× (Australia), ~2.8× (Canada) applied to the offshore rate when you pick a comparison market.
- BLS Employer Costs for Employee Compensation (ECEC) (2025)Used for: benefits ≈ 30% of total private-industry compensation — the basis for the 1.3–1.35× loaded-cost multipliers used against US salaries.
Methodology and constants last reviewed against the Zedtreeo pricing engine and Rate Index. Estimates are for planning; your quote depends on role, scope and engagement.
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Most Clients Break Even in Month 2-3
Start your free 5-day trial and see why most businesses never look back. Dedicated remote staff from $1,056/month, no contracts.
