🌎 Remote vs On-Location Workers Calculator
Model total workforce costs to decide the optimal mix of remote and on-site employees.
Remote Workforce Inputs
On-Site Workforce Inputs
Rent, utilities, security, cleaning, office services.
Transit passes, parking, meals, events.
How to Use This Calculator
Gather Compensation Data
Include salaries plus stipends, tools, or other variable costs for each employee type.
Model Office Expenses
Estimate annual cost per on-site employee for workspace, utilities, insurance, and shared services.
Compare Scenarios
Adjust headcount and costs to evaluate hybrid teams, satellite offices, or full remote transitions.
Share Insights
Use the savings figure to build business cases for leadership, finance, or HR planning sessions.
Formula
Total Remote Cost = Remote Headcount × (Salary + Stipends + Tools)
Total On-Site Cost = On-Site Headcount × (Salary + Office Facilities + Commute Perks)
Savings = Total On-Site Cost − Total Remote Cost
Average Cost per Employee = Total Cost ÷ Headcount
Adjust the components to reflect your organization’s policies and benefit structure.
Expand the model by adding turnover cost, recruiting savings, or productivity adjustments to quantify the full financial impact of remote-first or hybrid arrangements.
Full Description
Deciding between remote and on-location staffing requires balancing labor costs, office investments, and employee experience. Remote teams reduce real estate and facilities spend, while on-site teams can benefit from in-person collaboration and company culture.
This calculator provides finance, HR, and operations leaders with a structured framework for scenario planning. Adjust the inputs to model partial office reopenings, regional hubs, or fully distributed teams. Highlight trade-offs when negotiating budgets or designing total rewards packages.
Ideas to Extend the Model
- Include productivity assumptions (e.g., 5% output increase for remote engineers).
- Account for relocation bonuses, visa sponsorship, or cost-of-living adjustments.
- Model phased transitions—compare year-one implementation cost with steady-state expenses.
- Track carbon footprint reductions when employees avoid commuting.
Frequently Asked Questions
What costs should I include for remote teams?
Beyond salary, consider home office stipends, collaboration software, equipment refresh cycles, and coworking allowances.
How do I estimate office costs per employee?
Divide total annual office spend (rent, utilities, insurance, services) by the number of on-site employees using the space.
Can I model hybrid teams?
Yes—split employees between remote and on-site groups or create additional categories for flex desks versus dedicated offices.
How do I factor productivity into costs?
Assign a monetary value to productivity gains or losses (e.g., revenue per employee) and add it to the relevant group’s cost profile.