Payroll cost calculator: in-house vs managed payroll
Find out what running payroll in-house really costs your company. Enter your headcount, payroll team and software costs to compare them with managed payroll from TeamLease, and see your cost per payslip, annual savings, payback period and the hours your HR team gets back.
Your payroll today
Enter your numbers in the amber fields. Results update as you type.
Managed payroll with TeamLease
Indicative pricing. Your quote depends on scope and headcount.
Your results
Annual figures unless stated.
Want these numbers checked against your actual payroll setup?
Get a detailed payroll assessmentHow this payroll ROI calculator works
- Current cost = team size × cost per team member + software and infra + compliance penalties.
- Managed annual cost = fee per employee per month × employees × 12, plus any internal oversight you keep.
- Cost per payslip = annual cost ÷ (employees × pay runs per year).
- Return on managed spend = net annual savings ÷ managed annual cost.
- Implementation defaults to 3 months of fees (fee per employee per month × employees × 3) and can be overridden.
- Payback = implementation cost ÷ monthly net savings. The 5-year benefit subtracts implementation once.
- Hours freed assumes 1,920 productive hours per team member per year.
- Results are indicative and not a quote.
Payroll cost and ROI: frequently asked questions
How do I calculate the cost of running payroll in-house?
Add the fully loaded cost of everyone who works on payroll, the yearly cost of your payroll software and infrastructure, and what you pay in compliance penalties and interest. Divide that total by the number of payslips you process in a year to get your cost per payslip. The calculator does this for you as you type.
What does PEPM mean in payroll pricing?
PEPM stands for per employee per month. It is the fee a managed payroll provider charges for each employee on your payroll every month. Multiply it by your headcount and by 12 to get the annual service fee.
What is cost per payslip and why does it matter?
Cost per payslip is your total annual payroll cost divided by the number of payslips you issue in a year. It turns payroll into a single unit cost, so you can compare in-house payroll with a managed service on equal terms, whatever your headcount.
What should the fully loaded cost of a payroll team member include?
Include salary, employer contributions such as PF and ESI, bonuses and benefits, and a share of office, IT and management costs. Using salary alone understates what in-house payroll really costs.
Which compliance costs should I include?
Include interest and penalties for late or incorrect statutory payments and filings, such as PF, ESI, professional tax, TDS and labour welfare fund, along with the cost of responding to notices and correcting errors.
How is the one-time implementation cost estimated?
By default, the calculator estimates implementation as three months of fees: the fee per employee per month multiplied by your headcount and by three. You can type your own figure to override it.
Is this calculator a price quote?
No. Results are indicative and based only on the numbers you enter. Your actual pricing depends on your headcount, locations, pay structures and scope of service.
Want a detailed comparison for your company? See how TeamLease managed payroll works or talk to a payroll expert.
Get a detailed payroll assessment
The calculator gives you a quick estimate. A TeamLease payroll expert can go further: review your current setup, headcount, locations and compliance load, and build a cost comparison around your actual numbers.
Share your details and we’ll get in touch.
