What your next hire really costs.
US employee vs European contractor.

1. Pick the role you are hiring for. The preset fills a mid-band 2026 US salary and a realistic full-time monthly rate for an experienced European contractor in the same role.
2. Set the experience level. Junior, mid-level and senior each carry their own US and European presets.
3. Adjust the US salary slider if your offer differs. The whole model recalculates as you move it.
4. Adjust the European rate if you already have a number in mind. The presets reflect what strong, English-fluent European professionals expect for full-time remote work with US companies.
5. Compare the three paths. A US hire, a do-it-yourself Europe search, and a done-for-you search through Euro Remote Talent, each costed over the first 12 months.

Why the US number is bigger than the salary

Most founders budget the salary and forget the rest. For a US employee, the salary is roughly 70 to 80% of what the seat actually costs you. The widely used MIT estimate puts the true cost of an employee at 1.25 to 1.4 times base salary. Here is where the difference comes from.

Employer payroll taxes

FICA alone takes 7.65% of every salary dollar from the employer side. Add federal and state unemployment insurance and most companies land near 9%. On a $100,000 salary, that is $9,000 you pay before the employee sees a cent.

Health insurance and benefits

The 2025 KFF Employer Health Benefits Survey puts the average annual premium for single coverage at $9,325, with the employer carrying most of it. Add a 401(k) match, dental, vision and the rest of a competitive package, and benefits become the single biggest hidden cost of a US hire.

Equipment and overhead

Laptop, software seats, HR administration, compliance. Small on their own, a few thousand dollars a year together.

A European contractor works differently. You pay one monthly invoice. Payroll taxes, insurance and benefits are the contractor's own responsibility in their home country. The rate you agree is the cost you carry.

Why European remote contractors

Europe has deep pools of English-fluent, university-educated professionals in development, marketing, design, operations and support. Cost of living across most of the continent runs far below US metros, so a rate that is roughly half a US salary is a strong, competitive income locally. You are paying well by their market and saving by yours at the same time.

Time zones work better than most founders expect. A contractor in Central or Eastern Europe overlaps 3 to 5 hours with a US East Coast morning, enough for daily standups and real-time collaboration, with a quiet stretch of deep work before your day starts.

Methodology. Fully loaded US cost = base salary + 9% employer payroll taxes (7.65% FICA plus unemployment insurance) + $8,000 employer share of health insurance (KFF 2025 Employer Health Benefits Survey, single coverage average premium $9,325) + 5% retirement match and other benefits + $4,200 equipment, software and overhead. The result lands inside the MIT rule of thumb of 1.25 to 1.4 times salary. US hire path adds a typical 20% contingency recruiter fee. Do-it-yourself path adds $800 in ads and tools, 45 hours of founder screening time at $120 per hour, and an expected mis-hire cost of 30% of annual contractor cost at a 40% likelihood for self-recruited hires. Euro Remote Talent path adds the flat $6,500 fee; mis-hire cost is modeled at zero because of the 12-month replacement guarantee. Salary presets are mid-band 2026 US estimates; adjust the sliders to your market. Calculations update live.