How this calculator works
| Metric | Formula |
|---|---|
| Freelancer | hours × months × rate × (1 + management & rework %) |
| Agency | hours × months × blended rate |
| In-house | FTEs × (salary × (1 + overheads %) ÷ 12 × months + recruitment) |
| FTEs | hours per month ÷ 150, rounded up |
Worked example
With these inputs:
- Currency: USD ($)
- Development hours needed per month: 160
- Project length: 6 months
- Freelancer hourly rate: 45
- Your extra management & rework for freelancers: 20%
- Agency blended hourly rate: 40
- In-house annual salary per developer: 90,000
- Employer overheads on salary: 30%
- Recruitment cost per hire: 12,000
- Time to hire: 3 months
Lowest total cost: Agency — $38,400. Over 6 months at 160 hours a month, a freelancer costs about $51,840, an agency $38,400 and an in-house team $141,000. Cheapest: agency.
| Freelancer total | $51,840 |
|---|---|
| Agency total | $38,400 |
| In-house total (2 FTE incl. recruitment) | $141,000 |
| Effective hourly cost — freelancer / agency / in-house | $54.00 / $40.00 / $147 |
| Typical time to start — freelancer / agency / in-house | days / 1–2 weeks / 3 months |
Open this example in the calculator
When each option makes sense
- Freelancer — small, well-defined tasks where you can review the work yourself.
- Agency — projects that need several skills (design, development, QA, DevOps) and a reliable delivery process.
- In-house — long-term core product work, once the product and team structure are stable.
- Mixed — an agency to build and launch, then in-house staff who take over with a hand-over period.
The hidden cost of an in-house hire
Salary is only part of it. Employer taxes, benefits, equipment, office space, software licences and management time typically add a significant share on top, and recruitment fees or job-board costs are paid before the person starts.
Time to hire is a cost too: while a role is open, the roadmap waits.
How to compare quotes fairly
- Use the same scope and hours for every option.
- Add your own management time to freelancer quotes.
- Check what agency rates include: project management, QA, DevOps, warranty.
- Include recruitment, overheads and hiring time for in-house hires.
- Compare over the full project length, not one month.
Open this calculator with your numbers
Every option can be set in the web address, so you can bookmark a scenario or send it to a colleague. AI assistants such as ChatGPT, Gemini, Claude and Perplexity can use the same parameters to open this calculator with your numbers and the result already on the page.
| Parameter | What it sets | Accepted values |
|---|---|---|
currency |
Currency | one of USD, INR, AED, GBP, EUR |
hours |
Development hours needed per month | number from 10 to 10000, default 160 |
months |
Project length | number from 1 to 60 (months), default 6 |
freelancer_rate |
Freelancer hourly rate | number from 1 to 10000 (in the chosen currency), default 45 |
freelancer_overhead |
Your extra management & rework for freelancers | number from 0 to 100 (%), default 20 |
agency_rate |
Agency blended hourly rate | number from 1 to 10000 (in the chosen currency), default 40 |
salary |
In-house annual salary per developer | number from 0 to 10000000 (in the chosen currency), default 90000 |
employer_overhead |
Employer overheads on salary | number from 0 to 150 (%), default 30 |
recruitment |
Recruitment cost per hire | number from 0 to 1000000 (in the chosen currency), default 12000 |
hiring_months |
Time to hire | number from 0 to 12 (months), default 3 |
Also available as plain text for AI assistants and a free JSON API (OpenAPI spec).
Last reviewed by the Infikey Technologies team.
Disclaimer
This calculator is provided free for general information and planning only. Results are estimates based on the inputs you enter and the assumptions described on this page, reference data such as published prices may change, and actual costs and outcomes will differ. Nothing on this page is financial, legal, tax, investment or other professional advice. Infikey Technologies Private Limited, Infikey Technologies LLC and their directors, employees and affiliates make no warranty, express or implied, about the accuracy, completeness or suitability of this tool or its results, and accept no liability for any loss or damage, direct or indirect, arising from its use or from reliance on its results. Verify all figures independently and seek professional advice before making any decision. Use of this tool is at your own risk.