In-house vs offshore cost calculator

Enter your team size and assumptions. We’ll compare annual costs and savings.

Estimated annual savings

$0

In-house team / year$0
Offshore team / year$0
Savings0%

Region rates are midpoints of Accelerance’s November 2025 ranges; the default salary is the BLS May 2025 median for U.S. software developers. Benefits and overhead vary widely by company. Planning estimate only: get a quote for your exact team.

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Compare what a U.S. in-house team really costs with an offshore or nearshore team. Defaults use the BLS median U.S. developer salary and Accelerance’s November 2025 rate ranges.

What’s included

  • In-house: salary × (1 + benefits, payroll taxes and overhead) + recruiting amortized over two years.
  • Offshore: hourly rate × hours × 12, plus your management overhead.

Assumptions to check

  • Benefits and overhead often add 25%-50% to salary; office, equipment and software can add more.
  • Recruiting fees for engineers commonly run 15%-25% of first-year salary through agencies.
  • Offshore rates below are midpoints of published ranges:
Region Junior developer Senior developer
Asia (e.g. India, Vietnam, Philippines) $24-$31/hr $31-$41/hr
Europe (outsourcing markets) $31-$39/hr $64-$76/hr
Latin America $33-$45/hr $60-$75/hr
U.S. in-house (median salary $135,980, before benefits) - about $65/hr

Outsourcing rates: Accelerance, 2026 outsourcing rate trends (Nov 2025). U.S.: Bureau of Labor Statistics median annual pay for software developers, May 2025 (÷ 2,080 hours).

Frequently asked questions

Does this include time-zone and communication costs?

Partly: the management overhead field covers extra coordination. Increase it if your team needs heavy oversight.