Hire vs AI Tool Cost Calculator (new employee vs AI + review time)

How it works

Hire cost per year = salary × (1 + on-costs) + equipment; over the period add the one-off recruiting cost. Because the AI covers only part of the job, we compare it with that share of the hire’s cost. AI cost per year = tools and API + supervision hours × 52 weeks × loaded hourly cost of the reviewer; over the period add the one-off setup cost. People bring judgement, relationships and flexibility that this comparison cannot price; use it to frame the decision, not to make it.

⚠ Estimates for information only — not financial advice.

FAQ

Why count supervision time for the AI?

Someone has to set up prompts, check outputs and handle exceptions. That time is real labour cost and often decides whether the AI option is cheaper.

What on-cost percentage should I use?

It depends on the country and benefits: employer social insurance, pension, health cover and paid leave. Your payroll or accounting team can give the figure.

Checked 10 Nov 2026. Total employment cost (salary + employer on-costs + equipment + recruiting) versus tool cost plus supervision time valued at the loaded labour cost; all figures are your own quotes and estimates.