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EOR Ledger

EOR Ledger

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EOR or your own company? Find your break-even point

Pick a country, enter your team and your quotes for running a local company, and see when your own entity becomes cheaper than an Employer of Record.

EOR vs own entity: break-even calculator

EUR
EUR

Starts at US$599 converted at the US Treasury rate. Replace it with your quote, or compare published prices in the EOR pricing tracker.

Your quotes for your own German GmbH

These costs have no official price, so use quotes from a local accountant, payroll provider and lawyer.

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EUR
EUR

Break-even for Germany

Enter your quote for running a German GmbH. Your own company is cheaper once it costs less than the EOR fees it replaces: โ‚ฌ31,680 (about US$36,000) a year for 5 employees.

Annual cost for 5 employees
Per year, 5 employeesEOROwn entity
Salaries and employer costsโ‚ฌ398,288โ‚ฌ398,288
EOR feesโ‚ฌ31,680โ€”
Running the companyโ€”Your quote
Setup, spread over 3 yearsโ€”โ‚ฌ0
Payroll serviceโ€”โ‚ฌ0
Totalโ‚ฌ429,968โ€”

Official fees: About โ‚ฌ300 a year for a small GmbH in Munich: chamber of commerce dues, register and filing fees, the transparency register and the broadcasting levy. Tax adviser fees follow a statutory scale (GmbH running costs).

Audit: No audit for a small GmbH: one that stays within two of these three limits: โ‚ฌ7.5 million balance sheet, โ‚ฌ15 million revenue, 50 employees.

GmbH running costs in Germany: official fees and the tax adviser fee scale

Key issue in Germany: AรœG limits EOR placements to about 18 months. Legal limits can decide the question before cost does.

Employer costs use our Germany cost model; they're the same whoever employs the team.

How the calculator works

Salaries and statutory employer costs come from the same cost model as each country guide, and they're the same whether an EOR or your own company employs the team. So the real comparison is between two things:

  • EOR fees: the fee per employee per month, times 12, times your headcount.
  • Your own company: its yearly running costs, any setup cost spread over the years you expect to operate, and a payroll service per employee.

The break-even headcount is the running and setup costs divided by what each employee saves you a year (the EOR fee minus the payroll service), rounded up.

The EOR fee starts at US$599 a month, a price several large providers publish, converted at the US Treasury rate of 30 September 2026. Replace it with your quote. Published prices for every provider are in the EOR pricing tracker, and the step-by-step method is in our EOR vs local entity guide.

Frequently asked questions

When is it cheaper to set up your own company than to use an EOR?
When the yearly cost of running the company, plus any payroll service and setup cost spread over the years you expect to stay, is less than the EOR fees it replaces. Salaries and statutory employer costs are the same either way, so they don't change the answer.
What should I include in the cost of running a local company?
An accountant or tax adviser, payroll, a registered address, legal advice, insurance and banking, plus the official fees for that country. The calculator shows the official fees and whether a small company needs an audit; get quotes for the rest.
Why doesn't the calculator suggest a running cost?
Because there's no official price for accountants, addresses or legal advice, and any typical figure would be a guess. Your own quotes give a far more reliable answer than an average.
Is cost the only thing to consider?
No. In some countries, such as Germany with its 18-month limit on employee leasing, the law limits how long an EOR can place someone with you, which can decide the question before cost does. The calculator shows the key issue for each country.

Sources

  1. 1
    Treasury Reporting Rates of Exchange

    U.S. Department of the Treasury, Bureau of the Fiscal Service

    Exchange rates for US-dollar figures and the default EOR fee (2026-09-30).

  2. 2
    EOR Ledger country guides

    EOR Ledger

    Employer cost models, official entity fees and audit rules, each with its official sources.