What does one IT hire really cost?
In-House IT vs Managed IT Calculator
Compare the fully loaded cost of an in-house IT hire, with benefits, cover and tools, against a flat managed IT fee for the same team. Free and instant.
Your in-house setup
Assumptions you can change
- Benefits share: U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, December 2025 (benefits are 29.9% of private-industry compensation).
- Cover days, backfill rate, tooling, training, recruiting and overhead defaults are bd planning assumptions for a small business. Change any of them to match your numbers.
Fully loaded in-house cost
$140,500 / year
$468 per user per month across 25 employees. 1.76x the salary.
| Salary1 x $80,000 | $80,000 |
| Benefits and payroll taxes30% of salary | $24,000 |
| Cover for vacation, sick days and training20 days x 8 hrs x $125/hr backfill | $20,000 |
| Tools and software25 users x $25/mo (RMM, EDR, backup, email security, ticketing) | $7,500 |
| Training and certifications$2,500 per person | $2,500 |
| Recruiting, onboarding and turnover$5,000 per person, amortized | $5,000 |
| Workstation, phone and overhead$1,500 per person | $1,500 |
What does in-house IT really cost?
An in-house IT hire costs a small business roughly 1.6 to 1.9 times the salary once benefits, time off, tools, training, recruiting and overhead are counted. The salary is the visible part; the rest shows up across a dozen budget lines, which is why in-house IT usually looks cheaper than it is.
The bigger cost is coverage. One person cannot be an expert in security, cloud, networking and support at once, and when they are sick, on vacation or leave, the business runs without IT. Managed IT replaces that single point of failure with a team for one flat monthly fee. The calculator above puts the two side by side with your own numbers.
Questions
- How much does an in-house IT person cost a small business?
- Far more than the salary. Once you add benefits (about 30% of compensation per the Bureau of Labor Statistics), cover for vacation and sick days, the tools they need, training, recruiting and overhead, a single $80,000 hire typically costs a small business $130,000 to $150,000 a year. The calculator shows your number line by line.
- Is managed IT cheaper than hiring in-house?
- For most businesses under about 75 employees, yes. One flat monthly fee covers a whole team, the security tooling, and emergency coverage when it cannot wait, usually for less than one fully loaded salary. Above that size the answer depends on how specialized your needs are, which is why the calculator compares your actual numbers.
- What does the calculator include in the in-house cost?
- Salary, benefits and payroll taxes, backfill cover for the days your IT person is out, per-user tools and software (RMM, EDR, backup, email security, ticketing), training and certifications, recruiting and turnover, and workstation and overhead. Every assumption is visible and editable.
- Where does the managed IT comparison come from?
- It uses the same estimate engine as our Managed IT Price Calculator, based on your team size, devices and industry. Enter your work email to see the range side by side with your in-house total. A first appointment confirms the exact figure.
- Can I keep my IT person and still use managed IT?
- Yes. Co-managed IT pairs your in-house person with our team, tools and security stack, so they stop firefighting and get coverage when they are out. Many growing businesses land there rather than choosing one or the other.
- Is the comparison a real quote?
- No. It is a tailored estimate to set expectations. Your exact price is confirmed on a first appointment with an IT strategist, and we spell out any add-ons before anything is signed.