Entity vs EOR break-even calculator
Enter your EOR fee and entity setup costs to find the employee headcount at which incorporating locally becomes more cost-effective than using an Employer of Record.
At 7 employees, setting up a local entity becomes cheaper than using an EOR.
Note: statutory employer contributions (CPP/QPP, EI, provincial taxes) are the same whether you use an EOR or your own entity, so they cancel out of the break-even calculation. Only the EOR management fee vs. the amortized entity setup and ongoing overhead costs determine the crossover point.
Cost comparison by headcount
| Headcount | EOR annual cost | Entity annual cost | Cheaper |
|---|---|---|---|
| 1 | $5,988 | $41,000 | EOR |
| 2 | $11,976 | $41,000 | EOR |
| 3 | $17,964 | $41,000 | EOR |
| 5 | $29,940 | $41,000 | EOR |
| 10 | $59,880 | $41,000 | Entity |
| 15 | $89,820 | $41,000 | Entity |
| 20 | $119,760 | $41,000 | Entity |
| 30 | $179,640 | $41,000 | Entity |
| 50 | $299,400 | $41,000 | Entity |
Want to see the full statutory cost breakdown per employee? Use the EOR cost estimator.
How this works
The break-even headcount is the smallest number of employees where annual entity cost is less than or equal to the annual EOR cost. Statutory employer contributions (CPP/QPP, EI, provincial payroll taxes) are identical for both arrangements and cancel out.
Want to see the full per-employee statutory cost breakdown? Try the EOR cost estimator.
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