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BakayaPartners

Free tool

Engineer hiring cost calculator

Compare the first-year cost of an in-house engineer with a contract engineer. Every figure is editable, and nothing you type leaves your browser.

In-house hire
$/ year
% of salary

Payroll taxes, health, retirement and paid leave. Check your own figure.

% of salary

Agency fee or the internal time and job-board cost.

$/ year
months

Months of delay before the person starts.

Contract engineer
$/ hr
hrs
weeks

First-year cost

In-house$228,000

$196,000 salary, benefits and equipment + $32,000 recruiting

Contract$211,200

About $17,600 per month

With these numbers, contract costs about $16,800 less in the first year.

Not included: roughly 3 months of waiting for an in-house hire to start, which is time your roadmap doesn't get back.

This is a simple planning tool, not a quote. The default figures are placeholder assumptions, so replace them with your own. It ignores factors such as equity, management time, ramp-up and long-term retention.

Understanding the numbers

How to read the result

Still deciding how to add capacity? Read our guide to choosing between staff augmentation, a dedicated team and a fixed project, or talk to us about your situation.

What costs should I include when hiring an engineer in-house?

Beyond base salary, include payroll taxes, benefits, paid leave, recruiting fees or internal recruiting time, equipment and software. Also consider management time, onboarding and the months a role stays open before someone starts.

Why might a contract engineer cost less in the first year?

Contract engagements avoid recruiting fees and most employment overhead, and you pay only for the hours you need. The trade-off is that you don't build long-term in-house knowledge in the same way.

When is hiring in-house the better choice?

When the work is core, ongoing and benefits from deep company knowledge, or when you want someone to grow into a long-term leader. Many teams combine both: an in-house core with contract specialists for projects and peaks.

Are the default numbers real market rates?

No. They are placeholder assumptions to show how the calculator works. Replace them with figures from your own market, benefits plans and quotes.

Want a real quote instead of an estimate?

Tell us what you need and we'll give you a clear number after a short intake call.