Remote vs On-Site Workers Cost Calculator
Enter the salary and overhead costs for both remote and on-site workers to see which model costs less — and by how much — per employee and across your whole team.
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$61,000 total savings across 10 employees ($6,100/employee/year)
- 1
Remote overhead per employee
1,200 + 1,000 + 1,200 = 3,400Annual home-office stipend + equipment + SaaS (salary excluded). - 2
On-site overhead per employee
6,000 + 1,200 + 1,500 + 800 = 9,500 - 3
Overhead difference per employee
|9,500 − 3,400| = 6,100 - 4
Total annual savings
6,100 × 10 = 61,000
How does this calculator work?
Remote total cost per employee = salary + home stipend + equipment + software. On-site total cost = salary + office rent/person + commute benefit + facilities + equipment. The annual saving = (on-site − remote) × headcount. In 2025 typical ranges: remote overhead ~$3,000–5,000/yr vs. on-site overhead ~$8,000–15,000/yr per employee — all figures are editable estimates.
Formula
How this is calculated
The true cost of an employee goes well beyond salary. Remote workers incur home-office stipends (typically $50–$200/month), collaboration software licences and possibly a higher equipment budget to cover monitors and ergonomic setup at home. On-site workers add office-space rent allocated per person (typically $3,000–$12,000/year in major cities), commute subsidies, and facilities costs (cleaning, utilities, snacks, reception) that scale with headcount.
This calculator uses 2025 editable estimates — all figures are illustrative defaults that you should replace with your own data. Note that salary itself is often different between the two models: remote roles may attract candidates from lower-cost areas willing to accept below-market rates, or may require a premium to compensate for isolation; adjust the salary field accordingly. Recruiting costs, productivity differences and turnover costs are not included here but can be significant.
The comparison outputs the per-employee and total team cost for each model, plus the annual savings from choosing the cheaper option. Typical results show remote workers cost $3,000–$8,000 less per year once office overhead is removed, but savings vary widely by location, industry and role type.
Frequently asked questions
Office overhead per person typically includes: allocated rent ($/sq ft × sq ft per person), electricity and utilities, building maintenance, office supplies, coffee and snacks, reception and security staff, and often an equipment allowance. In expensive cities like New York or London this can exceed $15,000/employee/year.
In most studies, remote workers cost less in total overhead — the savings in office space usually exceed the cost of stipends and software. However, some organisations find productivity losses, higher turnover or collaboration costs partially offset those savings. This calculator focuses on direct measurable costs; the intangibles depend on your specific team and culture.
Yes, if applicable. Many companies pay location-adjusted salaries for remote workers (higher in expensive cities, lower in cheaper regions). If your remote workforce is in a lower cost-of-living area, reduce the salary for the remote scenario — this often makes remote even more cost-effective.
Also known as
TG we-Calculate Editorial Team. (2026). Remote vs On-Site Workers Cost Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/remote-vs-on-location-workers-calculator
TG we-Calculate Editorial Team. "Remote vs On-Site Workers Cost Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/remote-vs-on-location-workers-calculator.
TG we-Calculate Editorial Team, "Remote vs On-Site Workers Cost Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/remote-vs-on-location-workers-calculator
@misc{wecalculate_remote_vs_on_location_workers_calculator, title = {Remote vs On-Site Workers Cost Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/remote-vs-on-location-workers-calculator}}, year = {2026}, note = {TG we-Calculate} }
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