Free PEO Tool
Use our PEO savings calculator to compare what you pay now with what you could pay through a Professional Employer Organization. Enter your own costs, see the net after the PEO’s admin fee, and see how your numbers compare with the averages in NAPEO’s study. The result can be a saving or a cost.
Each box starts with a sourced average or a neutral assumption. Replace it with your own number. Toggle Annual / Monthly to see results the way you plan.
Range 1–500 employees.
Most PEOs charge $40 to $160. We start at $147, a cautious planning figure near the top of that range. Replace it with a real quote when you have one.
Count the part your company pays, not the employee’s share. We start at $645: the average single-coverage premium at firms with 10 to 199 workers, minus the 16% workers pay (KFF, 2025).
We start at 61%, the average at firms that offer coverage (KFF, 2025).
Count everyone’s time, including yours. We start at about one hour per employee, based on 2.6 HR staff per 100 employees at businesses overall (SHRM, cited by NAPEO).
Only a real quote can settle these. Try a few values to see what moves your result.
Starts at no change. A negative number means the PEO’s plan costs less than yours. Some plans cost more.
We start at 38%. PEO clients averaged 1.6 HR staff per 100 employees, against 2.6 for businesses overall (NAPEO, 2019).
Estimated net savings or cost
-$23,550/ yr
≈ -$942 per employee / yr-53% Estimated ROI
This starts from no change in your insurance costs, so a first result is often a cost. For 25 employees. See methodology.
Break-even
The PEO pays for itself if its health plan costs at least 21% less than yours.
Where your savings could come from
Value of HR time handed off
+$20,550/ yr
≈ $822 per employee / yr
NAPEO average: $965 per employee a year
Change in health costs
$0/ yr
≈ $0 per employee / yr
NAPEO average: $654 per employee a year
Services you’d stop paying for
$0/ yr
≈ $0 per employee / yr
NAPEO average: $90 per employee a year
Change in workers’ comp
$0/ yr
≈ $0 per employee / yr
NAPEO average: $66 per employee a year
These estimates are directional only. Actual results vary by state, industry, risk class, and plan choices. Use this tool for planning, not as a quote.
For precise, provider-by-provider quotes, work with The Huldisch Group. No cost. No pressure.
Savings Drivers
Your savings don't come from a single lever. They come from several forces working together — the reason outcomes vary so widely between providers and industries.
The largest category in NAPEO’s study. A PEO takes over payroll, benefits enrollment, and routine paperwork, so your team spends less time on them.
A PEO buys coverage for many client companies at once, which can lower the cost of comparable plans. It doesn’t always, so compare a real quote with your current plan line by line.
Payroll systems, benefits administration, and outside HR help that you may stop paying for separately.
PEO master policies and safety programs can lower what you pay. Your claims history and risk class matter most.
Bids compete. With clean data and a clear spec, many employers see better offers from multiple PEOs.
Best Fit
Businesses with high HR costs per employee, the group NAPEO found most likely to beat the average return
Businesses with high health costs per employee, which NAPEO also found most likely to beat it
Multi-state orgs or remote teams that struggle with varying state rules
Firms in moderate-to-higher WC risk classes seeking stronger safety/compliance
Employers who want to upgrade benefits without admin sprawl
Transparency
Each starting value is a sourced average or a neutral assumption. Replace any of them with your own number.
Important: These estimates are directional. Actual results vary by provider, state, industry, risk class, and plan design. Use this calculator for planning and ROI discussion, not as a quote. NAPEO is the PEO industry’s trade group and commissioned the study we cite.
Common Questions
It’s a directional estimate built from your own numbers and sourced starting values. Your actual results depend on headcount, industry, states, plan choices, and current costs. Only a real quote can settle what a PEO’s plan would cost you.
A PEO charges a fee, and it pays for itself only if your savings add up to more than that fee. The calculator starts by assuming your insurance costs don’t change, because we can’t know what a PEO’s plan would cost you. NAPEO’s 2019 study found average savings of $1,775 per employee a year against an average cost of $1,395, and expects roughly half of clients to land above that return and half below.
They compare what you pay now with the change you assume through a PEO. The PEO’s fee is separate. Quotes will show exact plans and prices.
We start at $147 per employee per month, a cautious planning figure near the top of the $40 to $160 range. Replace it with your own number. Providers may price PEPM or as a percent of payroll—your quotes will specify the model.
Not always. SUTA depends on state wage bases and experience ratings. Some employers see meaningful savings; others see little change. This calculator leaves unemployment insurance out.
Often, yes. Competing quotes, clear requirements, and clean census/payroll data help you negotiate both admin fees and benefit options.
Request free quotes. You’ll get provider-specific fees, plan choices, and a line-item comparison for your headcount and states.
Get Started
You’ve seen how the math works at your numbers. Now find out what top PEOs would actually charge for your team. Our partner, The Huldisch Group, provides free, no-obligation quotes from top PEOs.
Request Personalized QuotesFree · No obligation · Takes 2 minutes