EOR SWITCHING COST
Will a lower fee pay for the switch?
Use written quotes. The starting values below are an illustrative scenario, not a provider offer. All amounts are in USD.
ILLUSTRATIVE RESULT
- Monthly saving after the transition
- $900
- Full months to recover switching costs
- 4 months
- Net saving over 12 months after transition
- $7,803
- Transition costs + new deposit to fund
- $5,997
$2,997 in transition and overlap costs; $3,000 is a refundable deposit, not an expense.
The service-fee saving recovers the modeled switching cost within the selected period.
What goes into the calculation
Monthly saving = employees × (current fee − new fee) − extra recurring team costs.
Switching cost = one-off transition costs + employees × new fee × overlap months. The overlap input models the extra new-provider service fee while the old fee remains payable. Put any other overlapping charges into one-off costs.
Break-even = switching cost ÷ positive monthly saving, rounded up to a full month. If the saving is zero or negative, the model reports no cost recovery from service-fee savings.
Net saving = monthly saving × comparison months − switching cost. The comparison period starts after transition; overlap is charged separately as a switching cost.
Funding figure = switching cost + the new refundable deposit. It excludes payroll funding, employer charges and other working capital. It also excludes any return of the old deposit until that money actually arrives. A refundable deposit affects cash availability, not modeled profit.
Before moving an employee
Confirm the employment transition process, continuity of benefits and leave, contract requirements, payroll cut-off dates and responsibilities with both providers and qualified advisers. This is a fee calculator, not an assessment of whether a transfer is legally or operationally possible.
Request comparable proposals
Use the same country, headcount and requirements when contacting the shortlist. Request the transition plan and deposit refund timing in writing.
Build a provider quote requestRead the transition checklist · Compare small-team alternatives