Avenstra

Developer cost calculator

What a developer really costs a month: an employee with benefits and employer taxes, a local freelancer, or an offshore developer. Figures checked 15 November 2026.

In-house employee

Hourly rates (USD)

The freelance rate is an example: type the rate you have been quoted.

Employee

Cost an hour worked
Cost a year
A month

Local freelancer

An hour
A year
A month

Paid only for the hours worked.

Offshore developer

An hour
A year
A month

Paid only for the hours worked.

Offshore compared with an employee
Offshore compared with a local freelancer

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How it works

  1. The yearly cost of an employee is the salary plus benefits and employer taxes: salary × (1 + on-costs %).
  2. An employee is paid every month, busy or not. One full-time person works about a twelfth of the year’s working hours a month (1,840 ÷ 12 ≈ 153 hours in the US). More hours than that need more than one person.
  3. A freelancer and an offshore developer bill for hours worked: rate × hours.

The starting figures

WhereSalaryOn top of salaryHours worked a year
United States$135,980, median for software developers, May 2025 (BLS)46%: benefits are 31.5% of total pay for full-time private-industry workers, June 2026 (BLS)1,840: 2,080 less 30 days of holidays and leave
United Kingdom£55,000, median for software developers, 202525%: employer National Insurance (15% above £5,000), pension and other costs1,740: 37.5 hours a week less 28 days of leave
Germany€66,750, median for full-time IT jobs (Stepstone 2026)25%: employer social security and other costs1,760: 40 hours a week less about 40 days of leave and holidays

These are typical figures, not quotes. Salaries vary a great deal by city, seniority and skill.

Hire a developer from Avenstra

We are a software company in Sri Lanka. Our developers work on .NET, web, mobile, integrations and AI assistants, from USD 25 an hour, with no long contract. See how hiring works.

Questions

How much does a software developer cost an employer in the US?

More than the salary. The median US software developer salary was $135,980 in May 2025 (US Bureau of Labor Statistics). Benefits such as health insurance, paid leave and retirement, and employer taxes, come to about 31.5% of total pay for full-time private-industry workers (BLS, June 2026), which is about 46% on top of the wage. That puts the median developer near $198,500 a year.

Why is the hourly cost of an employee higher than the salary divided by 2,080 hours?

Because nobody works all 2,080 paid hours in a year. Public holidays, vacation and sick days come out, leaving about 1,840 hours of work in the US. Benefits and employer taxes are paid on top. Divide the full yearly cost by the hours actually worked to compare fairly with a freelancer or an offshore team, who bill only for hours worked.

What does an employee cost in the UK on top of salary?

Employer National Insurance is 15% of earnings above £5,000 a year, and the employer pays at least 3% into a workplace pension. With equipment, software and other benefits, 20% to 30% on top of salary is a reasonable planning figure. The calculator starts at 25%.

Is offshore development really cheaper?

Usually, for the hourly rate. It is cheapest when the work is clearly described, the team overlaps your working day for part of it, and you pay only for hours worked. Count your own time to manage the work too. The calculator compares the hourly cost only.

What does Avenstra Software charge?

From USD 25 an hour for a developer, with no long contract. The figure for the UK and the euro area is that rate in pounds and euros at about the rate of exchange in November 2026.

Can I change the figures?

Yes. Every figure is a starting point. Type your own salary, on-costs, hours and the rates you have been quoted.

More free tools

A free tool by Avenstra Software, a software company in Sri Lanka. We build business software, integrations and AI assistants. Talk to us about your project.

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