EOR vs entity calculator.
Set your India headcount and average salary. Compare cumulative year-1 cost: Versatile EOR ($149/employee/month) versus setting up your own Pvt Ltd subsidiary (setup ₹4L, ops ₹6L/year). Find where the math tips. No email wall.
Drag to 1 to 50 hires.
Gross monthly salary (before statutory deductions).
Year 1 cumulative cost
EOR (Versatile)
·
Salaries + statutory + · × $149/mo.
Own entity
·
Setup ₹4L + ops ₹6L + salaries + statutory.
- Cheaper option
- ·
- Year 1 savings
- ·
Verdict
·
Breakeven typically 25-30 hires. Assumptions: entity setup ₹4L, annual ops ₹6L, employer EPF 13%, ESIC 3.25% if applicable, gratuity 4.81%, Profession Tax by state. Director time and liability not costed.
The models compared.
EOR (Versatile)
No setup. Flat $149/employee/month + statutory costs (EPF 13%, ESIC, PT, gratuity). Variable with headcount. Scales cleanly to 50+ hires. Highest at 1-5, cheapest after 30.
Own entity (Pvt Ltd)
Setup ₹4L (incorp, PAN, GSTIN, bank). Annual ops ₹6L (accounting, audit, compliance, registered office). Fixed overhead regardless of headcount. Wins at scale (30+), but adds director liability and statutory inspection risk.
Hybrid (common)
Many founders start on EOR for first 10-15 hires, then migrate stable core engineering to their own entity at 20-30 hires, keeping variable GTM hiring on EOR. One MSA can support both.
Worked example
On the default 10 employees at ₹2,50,000 monthly gross in Karnataka, your own entity comes to ₹3,36,95,500 against ₹3,42,68,940 on EOR, so the entity route wins by ₹5,73,440 at this scale.
EOR vs entity calculator, answered.
The breakeven analysis for Indian hiring structure.
What does the breakeven point actually mean?
At 25-30 hires, cumulative year-1 cost between EOR and your own entity becomes similar. Below that, EOR is structurally cheaper because you avoid setup and compliance overhead. Above 30, your own entity slowly wins on per-employee cost, but you absorb director liability and ongoing statutory inspections.
Why is entity setup ₹4L and ops ₹6L/year?
Setup (incorporation, PAN, GSTIN, bank account, compliance audit): ₹3.5L to ₹4.5L. Annual ops (accounting, statutory filings, registered office, HR compliance): ₹5.5L to ₹6.5L. These are Versatile estimates based on 2025-26 market rates and actual client setups. Your exact cost may vary by CA hourly rates and complexity.
Does this include salary and statutory burden?
Yes. Both columns show: base salaries + employer PF/ESIC/gratuity/PT. EOR adds $149/employee/mo service fee. Entity adds setup and annual compliance overhead. The calculator does not include director time, personal liability insurance, or founder attention cost.
Can I do hybrid: some on EOR, some on entity?
Yes, and many founders do at scale. Keep variable hiring (sales ramp, contractors, short-term projects) on EOR (no setup penalty), migrate stable core engineering/product to your entity once you hit 15-20 hires. Versatile can set up and run both models under one MSA.
When is this calculator the wrong answer?
When you plan to scale beyond 50 hires in the first year (cash flow changes), or you are factoring in founder time and liability risk (not modeled here). At scale, the numbers need SPO modelling and tax simulation. Book a call with our setup team.
Longer reading: EOR services in India · EOR vs entity: when math tips · Related tool: entity vs GCC vs EOR breakeven finder
Tell us where you are on the decision.
A role you want to hire, a team you want moved, or just the two routes to compare. A named person replies in 4 to 6 hours.
What the first call covers
30 minutesA cost comparison for your headcount, on your numbers, both routes.
- A written cost breakdown
- Entity documents before the call
- PF, ESI, TDS, termination law
- No follow-up sequence
You pick the time, we send a Meet link. Any timezone.