Skip to content

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.

AdobeMixCare HealthLacosteL'OccitaneTom FerryYusen LogisticsNeopetsAdobeMixCare HealthLacosteL'OccitaneTom FerryYusen LogisticsNeopetsAdobeMixCare HealthLacosteL'OccitaneTom FerryYusen LogisticsNeopetsAdobeMixCare HealthLacosteL'OccitaneTom FerryYusen LogisticsNeopets

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

months

How long you will employ there

2. Your own entity

$

Assumption: enter your quotes

$ / month

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

Second Talent EOR (from $129/mo) Deel ($599) Own entity
$0 $0 $0 $0 $0 Month 0 Mo 9 Mo 18 Mo 27 Mo 36

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.

01

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.

02

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.

03

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?
Add up only the costs that differ. An EOR costs employees × monthly fee × months. An entity costs setup + monthly running cost × months. The entity breaks even after setup ÷ (employees × EOR fee − running cost) months; if the running cost is higher than the EOR fees it replaces, it never breaks even. Salaries and employer contributions are left out because local law sets them and they cost the same under both.
How much does an Employer of Record cost per employee?
Second Talent's EOR starts at $129 per employee a month in its nine core Asian markets and $249 for coverage across 20+ countries (pricing). On 13 October 2026 the large platforms listed: Deel $599, Remote from $599, G-P from $599, Atlas HXM from $599, Oyster $699, Papaya Global from $499, Multiplier $459 billed annually ($499 billed monthly) and Pebl $399. Compare 20 providers by country in the EOR cost calculator.
How much does it cost to set up an entity abroad?
It depends on the country and the firms you hire, so the calculator treats it as an input. Government fees are usually the small part: Singapore's registry charges S$300 to register a local company, and every company must appoint at least one director who meets local residency rules (ACRA). Most of the cost is legal and accounting work, the bank account, payroll and tax registration, and a resident director where one is required. Get two quotes and enter them above.
How many employees do you need before an entity is cheaper?
Divide the monthly cost of the entity, with setup spread over the time horizon, by the EOR fee. With a $25,000 setup over 36 months and $3,000 a month to run it, an entity beats a $599 EOR from 7 employees and a $129 EOR from 29 employees. The calculator shows this break-even headcount for your own inputs.
Why does the calculator leave out salaries?
Because they do not change. Your employee earns the same gross pay, and the government collects the same social insurance, pension and health contributions, whether the employer on paper is an EOR or your own entity. Only the fee or the entity's setup and running costs differ, so those are what the calculator compares.
What does an EOR handle that you would do yourself with an entity?
The legal employment relationship: local employment contracts, monthly payroll, tax withholding and filings, statutory contributions and benefits, and compliance with local labor law, including terminations. With your own entity you hire an accountant, payroll provider and local counsel to cover the same ground.
Can you move employees from an EOR to your own entity later?
Yes. Many companies start on an EOR, then set up an entity once the headcount in that country justifies it. The employees sign new contracts with your entity, so plan the transfer with local counsel to carry over tenure, leave balances and benefits.
Is this an EOR cost calculator?
It compares an EOR with your own entity over time. To compare EOR fees from 20 providers in the country you are hiring in, side by side, use the EOR cost calculator.
G2 Badges

Get a real quote in 24 hours.

Send us your role and budget and our team will reply with a tailored estimate plus 6 vetted candidates.

Get Your Quote

Talk to Second Talent

How would you like to talk?

Chat on WhatsApp Message us at your own pace. No spam.

Prefer email? hello@secondtalent.com

Loading available times…