EOR vs Entity Cost Calculator
Should you employ overseas staff through an Employer of Record or set up your own local entity? Compare the cumulative cost of each, using published EOR fees and your own entity quotes, and find the month an entity starts to pay off.
How the break-even works
Months until an entity pays off = entity setup cost ÷ (employees × monthly EOR fee − entity running cost per month). Salaries, employer contributions and benefits are set by local law and cost the same either way, so the calculator compares only the costs that differ.
1. Your team
Headcount you plan there
Per employee per month, October 2026
How long you will employ there
2. Your own entity
Assumption: enter your quotes
Accounting, payroll, filings
Lowest cost
Saved vs other EOR
$0
Saved vs entity
$0
Break-even headcount
Lowest cost and savings are over the time horizon. Break-even headcount is where an entity beats Second Talent EOR.
Entity vs Second Talent EOR
Your own entity starts to beat Second Talent EOR around this month.
Entity vs Deel ($599)
Your own entity starts to beat this EOR around this month.
Cumulative cost over time
Side-by-side cost breakdown
| Line item | Second Talent EOR | Other EOR | Own entity |
|---|---|---|---|
| One-time setup | $0 | $0 | $0 |
| EOR fee (per employee per month) | $0 | $0 | $0 |
| Entity running cost (per month) | $0 | $0 | $0 |
| Monthly cost, whole team | $0 | $0 | $0 |
| Total over the horizon | $0 | $0 | $0 |
Second Talent's EOR starts at $129 per employee a month in its nine core Asian markets (pricing). Other EOR fees are list prices read from each provider's pricing page on 13 October 2026; compare 20 providers by country in the EOR cost calculator. Entity setup and running costs are assumptions: replace them with quotes from a local accountant and law firm.
EOR or entity: what each one costs
The salary is the same either way. What changes is who runs payroll, filings and compliance, and how you pay for it.
Employer of Record
A provider that already has an entity in the country employs your staff for you and runs payroll, tax filings, contracts and statutory benefits for a monthly fee per employee. Second Talent starts at $129; Deel lists $599, Remote and G-P start at $599 and Oyster lists $699 (October 2026). There is no setup cost, so an EOR is cheapest for small teams.
Your own entity
You incorporate a subsidiary and employ staff directly. There is no per-employee fee, but you pay to set it up (government filings, legal work, a bank account, payroll registration) and to keep it running every month (accounting, tax returns, payroll, a registered address and, in some countries, a local director), whatever your headcount.
The break-even point
An entity pays off once the EOR fees you stop paying each month exceed its running cost by enough to recover the setup cost. With the defaults (10 employees, a $25,000 setup and $3,000 a month to run it), an entity breaks even against a $599 EOR in month 9 but never beats a $129 EOR at that size.
EOR vs entity questions, answered
How do you calculate EOR vs entity cost?
How much does an Employer of Record cost per employee?
How much does it cost to set up an entity abroad?
How many employees do you need before an entity is cheaper?
Why does the calculator leave out salaries?
What does an EOR handle that you would do yourself with an entity?
Can you move employees from an EOR to your own entity later?
Is this an EOR cost calculator?
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