Employer of record
OPERATING FEES · 12 MONTHS
€31,938–€37,270Including modeled employment cost€403,638–€425,470
THE NEXT HIRING DECISION
EOR or your own entity?
Find the tipping point.
Compare the cost of both routes before you commit. Enter your team size and fees, explore different horizons, and take the budget with you.
EOR vs local entity break-even calculator Free. No account. No email.
01 YOUR HIRING PLAN
Set the scenario
02 THE DECISION, IN NUMBERS
Germany · 5 employees · 12 months
Gross salary €60,000 per person / year · Extra benefits 5%. Constant team size throughout.
ENTITY FEES BECOME LOWER AT THE MIDPOINT
12 employees
Over 12 months, using the middle of each entered fee range. This is a cost comparison, not a recommendation to incorporate.
Possible with favourable fees7 employees
Across all entered fee ranges17 employees
Including modeled employment cost€403,638–€425,470
Local entity
OPERATING FEES · 12 MONTHS
€46,210–€106,638Including modeled employment cost€417,910–€494,838
EOR fees lower for this scenario. Legal suitability, timing and operational work still need separate checks.
The employment cost is common to both routes
- Gross salary, over the selected horizon
- €300,000
- Modeled employer contributions
- €56,700–€73,200
- Extra benefits allowance
- €15,000
- Employment subtotal
- €371,700–€388,200
These costs cancel out of the fee-only break-even calculation because the employment package is held equal. Actual employer contributions or benefits may differ between structures.
Model, fees and sources
OECD · reference 2025 · retrieved 2026-10-15.. OECD + NTCP average-wage benchmark with a planning band. Some mandatory local or sector costs remain excluded; this is not salary-specific payroll.
API refresh failed or pending. The last validated reference is used.
FX reference: 2026-10-16 (current). USD fees → EUR results. This is not a transaction rate.
- EOR service fee · Per employee / month
- 599.00 USD – 699.00 USD
- Entity setup · Once for the company
- 22,000.00 USD – 55,000.00 USD
- Entity fixed running costs · Per company / year
- 30,000.00 USD – 65,000.00 USD
- Entity variable payroll costs · Per employee / month
- 0.00 USD – 0.00 USD
Unchanged EOR defaults use Yepaa's editorial reference dated 2026-08-21. Entity setup and fixed running costs are illustrative country budgets, not official statutory fees. Zero variable payroll cost is only an initial assumption. Replace these values with quotes. Fees are not updated automatically.
YEPAA
Turn your estimate into a hiring brief
Optional · 3 questions. Prepare the details and questions for a provider, without giving us your contact details.
Germany · 5 employee(s) · 12 months · €60,000 gross / person / year
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Opens Deel pricing in a new tab. Choose “Book a demo” there to discuss your project; copy your brief yourself. Clicking here does not submit a request.
03 WHAT CHANGES AS YOU GROW?
A small team now. A different answer later.
Operating fees only, in EUR. Same fee assumptions in every cell. Salary and employer contributions are excluded here because they are held equal between routes.
| Employees | 12 months | 24 months | 36 months |
|---|---|---|---|
| 1 | EOR fees lowerEOR €6,388–€7,454Entity €46,210–€106,638 | EOR fees lowerEOR €12,775–€14,908Entity €72,869–€164,401 | EOR fees lowerEOR €19,163–€22,362Entity €99,529–€222,163 |
| 5 | EOR fees lowerEOR €31,938–€37,270Entity €46,210–€106,638 | Ranges overlapEOR €63,876–€74,540Entity €72,869–€164,401 | Ranges overlapEOR €95,814–€111,810Entity €99,529–€222,163 |
| 10 | Ranges overlapEOR €63,876–€74,540Entity €46,210–€106,638 | Ranges overlapEOR €127,753–€149,080Entity €72,869–€164,401 | Ranges overlapEOR €191,629–€223,620Entity €99,529–€222,163 |
A lower-fee label requires the entire range to be lower. Touching or overlapping ranges remain uncertain. The outlined cell is your selected scenario.
The calculation, without the black box.
Entity fixed costs = setup + annual running costs × months / 12.
Monthly saving per employee = EOR fee − variable entity payroll cost.
Equality headcount = fixed costs / (monthly saving × months). The first whole headcount above equality has lower entity fees. With no positive saving, fixed costs cannot be recovered.
Cost is not the only decision
Check whether each structure is legally available, the employment terms, launch time and who will do the operational work. Direct registration as a foreign employer may also be an option; this is not a legal eligibility test.
Confirm separately: onboarding and exit fees, taxes on services, recruitment, severance, FX markups, banking, internal time and entity closure. Refundable deposits are a cash requirement, not an expense here. No hiring ramp, inflation or discounting is modeled.
READY FOR AN ACTUAL QUOTE?
Take a clearer brief to the provider.
Germany · 5 employees · 12 months. Ask for an itemised quote, then replace the examples above.
Opening the provider does not send your salary, fees or headcount. No enquiry is submitted by Yepaa.
Before you decide
How is the EOR vs entity break-even point calculated?
For each horizon, divide entity setup plus fixed running costs by the EOR fee minus entity payroll cost per employee over that horizon. The result is the equality point. Yepaa also shows the first whole employee count where entity fees are strictly lower. Salary and employer costs are held equal across the two routes.
Is there a universal employee count for opening an entity?
No. Setup costs, ongoing administration, payroll fees and how long the team stays all affect the result. A lower modeled cost does not establish that an entity or EOR is legally available or operationally suitable. Confirm the structure with local advisers.
Can I compare actual quotes rather than example fees?
Yes. Enter the same amount in each lower and upper field for a fixed quote, or keep a range for uncertain costs. Select the currency of those fees separately from the salary and result currency. Enter company administration once, not once per employee.
What if the fee ranges overlap or there is no break-even?
Overlapping ranges do not justify a definite winner. Yepaa shows both an optimistic threshold and a threshold where the entity is cheaper across all entered fee ranges. If EOR fees do not exceed entity payroll fees, positive entity setup and fixed costs cannot be recovered in this model.
What is not included in the comparison?
Unless you include them in your inputs, the model excludes EOR onboarding and exit fees, VAT or other taxes on services, FX markups, bank costs, recruitment, severance, internal management time and entity closure. Refundable deposits affect cash needs but are not treated as expenses. Headcount and salaries are constant; there is no inflation, discounting or hiring ramp.
Do I need an account or an email address?
No. You can calculate, print the result and copy a link without an account or email. A shared link includes the budget values shown in its address, so share only non-confidential scenarios. Yepaa does not send it to anyone for you.
Yepaa · EOR vs local entity calculator · Generated 2026-10-16 22:57 UTC · Planning estimate, not payroll, legal advice or a binding quote.