Contractor vs Full-Time Employee (FTE) Calculator

Use this free Contractor vs FTE Calculator to estimate annual contractor costs at a standard 2,080-hour assumption and compare them with a full-time employee's annual salary.

Contractor vs FTE Calculator

This is a planning comparison, not a complete employment-cost estimate. It assumes 2,080 billed contractor hours annually and compares that amount with base FTE salary only. It excludes employee benefits, employer payroll taxes, equipment, paid leave, administrative costs, contractor expenses and other cost differences.

How the Comparison Is Calculated

Estimated annual contractor cost = Contractor hourly rate × 2,080 hours (40 hours per week × 52 weeks).

Percentage difference = ((Annual contractor cost − FTE annual salary) ÷ FTE annual salary) × 100.

Example

At $80 per hour, 2,080 hours of contractor work costs $166,400 annually. Compared with an FTE salary of $120,000, that estimate is 38.67% higher, before other employment-related costs or differences in billable hours.