QA team cost calculator: hire, contract or outsource
Enter team size, role, level and location. You get the monthly and annual cost of four ways to staff QA, with the assumptions shown line by line.
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- Pay
- Employer on-costs
- Fees, premium, equipment
- PassRidge margin
- QA lead, tooling, SLA
Estimates for planning, not a quote. Year-one cost for a full-time engineer. Currency conversion uses indicative rates.
About the Team Cost Calculator
The calculator estimates what it costs to put N QA engineers on your team. It compares a permanent hire, a contractor, PassRidge staff augmentation and PassRidge Managed QA, and splits each into salary, employer on-costs, fees and margin.
- Four models side by side, with a cost breakdown
- Pay from our calibrated salary model, on-costs by region
- Shareable link that keeps your inputs
Three steps
- 1
Describe the team
Choose how many engineers, which role and level, and where you would hire.
- 2
Pick a delivery location
Choose where PassRidge engineers would be based. Cost follows local pay and on-costs.
- 3
Read the breakdown
Compare totals, see what drives each model and share the link with finance.
How the numbers are built
Salary is the role's US base pay for the level, scaled by the country pay index from our calibrated model, which uses posted pay ranges from public employer job boards. Employer on-costs are regional averages applied to gross salary.
Permanent: gross salary plus on-costs, an 18% recruitment fee in year one and equipment and software. Contractor: gross-equivalent pay with a 35% premium for self-paid taxes, benefits and bench time, plus 5% engagement admin. PassRidge staff augmentation: delivery-country salary plus on-costs, a 32% service margin, over 1,800 billable hours, never below our published starting rate. Managed QA: the staff-augmentation rate scaled by the ratio of our published Managed QA to staff-augmentation starting rates, which adds QA lead time, tooling and reporting.
Employer on-cost assumptions by region
| Region | On-cost of gross | What it covers |
|---|---|---|
| North America | 22% | Payroll taxes, health cover, retirement match |
| UK & Ireland | 18% | Employer NI / PRSI, pension, benefits |
| Western Europe | 30% | Social contributions, insurance, holiday pay |
| Nordics | 28% | Social fees, pension, holiday pay |
| Central & Eastern Europe | 21% | Social contributions, medical cover |
| Latin America | 32% | Statutory contributions, 13th-month pay, holiday bonus |
| Asia-Pacific | 15% | Provident fund / superannuation, insurance |
| Middle East & Africa | 12% | Statutory contributions, insurance |
Other assumptions
- Permanent: recruitment fee 18% of gross salary in year one; equipment and software $3,600 a year.
- Contractor: 35% premium on gross-equivalent pay plus 5% engagement admin. No on-costs or equipment.
- PassRidge staff augmentation: delivery-country salary plus its on-costs, a 32% service margin, divided over 1,800 billable hours. Never below the published starting rate ($38 an hour at mid-level; junior x0.85, senior x1.3, lead x1.55).
- Managed QA: the staff-augmentation rate multiplied by 1.26 (published Managed QA starting rate $48 over staff augmentation $38), which adds QA lead time, tooling and SLA reporting.
Not included: management time, training, severance, taxes on service fees, office space and exchange-rate movements. Published rates · Outsourcing models · Request a quote
Team Cost Calculator FAQ
How accurate is the calculator?
It is a planning estimate within roughly 15 to 20%. Real costs vary by city, company, benefits and negotiation. Use it to compare options, then ask for a quote.
Why is the contractor more expensive than a permanent hire?
A contractor covers their own taxes, benefits, holidays and bench time, so the day rate is higher than the salary equivalent. The saving is flexibility: you pay only while you need them.
What is not included?
Management time, training, severance, office space, taxes on PassRidge fees and currency movements. Add them if you track them.
Are PassRidge rates final?
The model uses our published starting rates and a documented margin. A quote depends on stack, time zone overlap, team size and term, and is confirmed in writing.
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