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Outsourcing ROI Calculator

Estimate how much a 24/7 follow-the-sun dev team could save you per year.

  • 🧮 Calculator
  • ✓ Free
  • ✓ No sign-up
  • ✓ Private — runs in your browser
  • ✓ Any device

Return on investment

ROI = (return − cost) ÷ cost × 100

Net gain / loss
Annualized ROI / yr

Annualized ROI = (return ÷ cost)1/years − 1 · Estimates only, not financial advice.

Estimated annual saving

% lower than an all-local team — and with a follow-the-sun team, work continues overnight too.

All-local / year
With our team / year
Get a fixed-price quote →

Illustrative estimate. Real savings depend on scope and seniority.

Why you’ll love Outsourcing ROI Calculator

Instant & freeNo signup, no paywall, no limits — Outsourcing ROI Calculator works the moment the page loads.
Completely privateEverything runs in your browser. Nothing you enter is ever uploaded or stored on a server.
Works on any deviceFully responsive and touch-friendly — use it on your phone, tablet or desktop.
Accurate & clearBuilt on the real formulas, with a breakdown you can actually trust.

How to use it

  1. 01

    Open it

    No download and no login — the tool is ready right at the top of this page.

  2. 02

    Use it

    Enter your details or start interacting. Everything updates live as you go.

  3. 03

    Get your result

    Copy, download or share your result in a single tap. That’s it.

About Outsourcing ROI Calculator

An outsourcing ROI calculator helps you estimate the financial impact of hiring an offshore development team. By comparing your current dev costs against outsourced rates, you can quickly see potential annual savings. This tool factors in salary, benefits, and overhead for in-house developers versus lower rates from follow-the-sun teams. Use it to validate whether offshore outsourcing makes financial sense for your specific situation.

Most companies underestimate both their current development costs and the overhead of managing remote teams across timezones. An offshore savings calculator bridges that gap by accounting for coordination time, quality assurance, and team integration—the real costs that reduce gross savings. The result is a realistic outsourcing ROI projection you can bring to finance, not inflated figures.

The calculator runs entirely in your browser with no signup required. Enter your current team size, average developer salary, and estimated offshore rates to get instant projections. Your numbers never leave your device—nothing is stored or tracked. Explore multiple scenarios and find the outsourcing model that fits your budget and growth plans.

Popular uses

  • ✦ Startup with limited budget comparing 4 in-house developers versus 8 offshore developers to accelerate product development.
  • ✦ SaaS company with 3 engineers implementing 24/7 follow-the-sun coverage to reduce on-call fatigue and customer support response times.
  • ✦ Project-based team estimating development costs for a 6-month client engagement requiring skills not available in-house.
  • ✦ Engineering manager justifying expanded headcount to finance by modeling offshore outsourcing as equivalent capacity at 40% lower cost.
  • ✦ Company scaling from 1 to 3 products, calculating whether outsourcing enables growth without proportional salary and overhead expenses.

Frequently asked questions

How much can I save by outsourcing development?
Savings vary based on location and experience level. Offshore developers typically cost 30-50% less than US-based developers, but account for coordination overhead (usually 10-15% of gross savings). A team of 4 developers at $120k each could save $150k-200k annually after overhead—but the real number depends on your specifics, which is why this calculator exists.
What dev costs should I include in the calculation?
Include base salary, benefits, payroll taxes, equipment, and office overhead. Estimate the percentage of management time spent coordinating with offshore teams. On the outsourced side, include hourly rates, timezone overlap costs, and onboarding expenses. The calculator lets you adjust all these factors to reflect your actual situation rather than industry averages.
Is this calculator accurate for my company?
Accuracy depends on how realistic your inputs are. The calculator projects ROI based on your assumptions—it's a planning tool, not a guarantee. Real savings depend on hire quality, team dynamics, and your management of the remote relationship. Use it as a starting point, then validate with a small pilot project before scaling.
How do I account for different offshore regions?
Enter rates specific to the region you're considering. Eastern European developers typically cost 20-30% less than US rates; South Asian developers cost 40-60% less. Rates vary within regions by experience. Run the calculator for Poland versus the Philippines to compare scenarios and find the ROI that works for your budget and quality requirements.
Is Outsourcing ROI Calculator free to use?
Outsourcing ROI Calculator is 100% free — no signup, no watermarks and no usage limits. It’s one of 200+ free tools we build and give away.
How accurate is this calculator?
It uses the standard formulas and shows its working, so you can verify every number. For big decisions, treat the result as a reliable estimate.

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