Freelancer vs Full-time Cost Comparison
Compare the true monthly cost of a freelancer (including GST) versus a permanent employee (including statutory costs and overhead).
Enter Your Numbers
How this calculator works
Freelancers look more expensive per hour but are often cheaper for non-full-time needs. A permanent employee costs 1.25× their salary when you include office space, equipment, HR overhead, PF, and gratuity. A freelancer costs their rate + 18% GST, but only for the days you need them — and they require zero fixed cost when not engaged.
Full-time true cost = Salary + PF + Gratuity + Insurance + Office overhead (×1.25) | Freelancer cost = Day rate × Days needed × 1.18 (GST)
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Freelancer wins below 15 days/month
For anything less than 15 days per month of work, a freelancer is almost always cheaper than a permanent hire.
GST is recoverable
If your business is GST-registered, the 18% GST on freelancer invoices is an input tax credit — effectively reducing the real cost.
Hybrid model works best
Use freelancers for specialised or variable-demand work; permanent staff for core team functions that need consistency.
Frequently Asked Questions
For anything less than 15 days per month of work, a freelancer is almost always cheaper than a permanent hire.
If your business is GST-registered, the 18% GST on freelancer invoices is an input tax credit — effectively reducing the real cost.
Use freelancers for specialised or variable-demand work; permanent staff for core team functions that need consistency.