Named Top U.S. PEO Brokerage of 2026 (#6) →
Free tool · PEO calculator
Is a PEO worth it?
Run your numbers.
A PEO can lower what you spend on health insurance, workers' comp, payroll and HR, but only if the math works for your business. Enter six basics and get a line-by-line estimate built on current tax law and published benchmark rates. It tells you when a PEO isn't worth it, too.
Built on:
KFF benefits data
BLS wage data
IRS and SSA limits
Free, about two minutes
Well-known PEOs you can compare, including
Where the savings come from
Five ways a PEO can save,
one fee to weigh against them.
A PEO pools thousands of employees to buy benefits and insurance at rates a small business rarely gets alone. The calculator weighs each saving against the PEO's fee, so the number you see is net.
Health and benefits
Large-group health, dental and vision rates, often with richer plans than you can buy as a small group.
Workers' comp
Coverage under the PEO's master policy, often at better rates, with pay-as-you-go billing and no big upfront deposit.
HR and compliance
Handbooks, onboarding, state and federal filings and HR support, without hiring a full-time HR team.
Payroll and tax filing
Payroll runs, tax deposits and year-end forms handled for you, so the payroll fees you pay today often go away.
Retirement plans
Access to a 401(k) with the PEO handling much of the admin and compliance work.
The PEO fee
What you pay for all of it: usually a percentage of payroll or a flat fee per employee. The calculator subtracts it, so your savings are net.
The research
What PEO clients see,
on average.
Research from NAPEO, the PEO industry association, shows what businesses typically gain. Your own number depends on your industry, benefits and headcount, which is exactly what the calculator estimates.
27%
average return on investment from using a PEO
$1,775
average savings per employee, per year
2–6%
of gross payroll: a common PEO pricing range
$80–$200
per employee per month: the typical flat-fee range
Sources: NAPEO, PEO statistics and data. Pricing ranges are typical market ranges, not quotes.
What the calculator asks
Six inputs, about two minutes.
Headcount: how many employees you have
Annual payroll: your total gross wages
State: where most of your team works
Industry: so workers' comp is priced for your job types
Business structure: LLC, S corp, C corp or other
Whether you're on a PEO today
Want a second opinion?
Pressure-test your number with our team.
We'll check the estimate against your real census and current costs. If a PEO makes sense, we'll line up the best-fit options side by side, free.
How it works
From six inputs
to a line-by-line ledger.
Enter six basics and your work email. You'll see your number right away, and the full report lands in your inbox.
Step 1
Enter six quick inputs
Headcount, payroll, state, industry, business structure and whether you use a PEO today, plus your work email.
Step 2
See your estimate
Net annual savings, the impact per employee and a cautious-to-favorable range.
Step 3
Open the full breakdown
A line-by-line ledger across health, workers' comp, payroll, HR and retirement, with the source behind every figure.
Step 4
Sharpen it with real numbers
Swap in your actual costs, or book a call and we'll pressure-test the estimate against your census.
The honest answer
When is a PEO not worth it?
A PEO isn't the right move for every business. That's a matter of fit and timing, not a knock on PEOs. When the numbers don't favor a PEO, the calculator shows a net cost instead of a saving, so you can decide with real figures.
General guidance. Your own numbers decide.
May not pay off
You already run very lean HR
You already get large-group benefits pricing
You're very small with simple compliance needs
Your benefits and work comp rates are already strong
Usually pays off
10–100 employees with rising benefit costs
Higher-risk work with costly workers' comp
Employees in more than one state
No dedicated HR person yet
How we calculate
Every figure traces to a public, dated source.
We're an independent, licensed brokerage, so the estimate shows the real picture, favorable or not.
Health: KFF Employer Health Benefits Survey
Workers' comp: class-based rates per $100 of payroll
HR cost: BLS wage and benefits data
Taxes: current SSA and IRS limits
PEO fees: typical market pricing ranges
Results: a range, not a single promise
Platform launch · December
Pre-register for the PEO Marketplace platform.
Everything the PEO market has been missing, from A to Z: smart shopping, side-by-side comparisons and contract signing on one platform, taking the whole PEO process from weeks to hours. Pre-register today as a business, a partner or a PEO. The first 50 businesses get free access to the beta launch.
✓ Free beta access for the first 50 businesses
✓ First in line when the platform opens in December
✓ Launch updates only. No spam, unsubscribe anytime
Need a PEO right now? Our team can run the comparison for you today →
Early access
Reserve your spot
Who's registering?
For employers
Shopping for a PEO or reviewing the one you have? The first 50 businesses to pre-register get free access to the beta launch of the marketplace.
Free beta access is limited to the first 50 businesses that pre-register.
Calculator FAQ
Is a PEO worth it?
Your questions, answered.
Reviewed by PEO Marketplace, a licensed Florida insurance agency (#L129491). Last updated October 2026.
Is a PEO worth it for a small business?
For most small businesses with about 10–100 employees, yes. A PEO typically pays for itself through lower health and workers' comp rates, reduced HR overhead and fewer compliance mistakes. The exact benefit depends on your industry, current benefits costs and headcount, which is what the calculator estimates.
How much does a PEO cost per employee?
PEO pricing usually runs either 2–6% of gross payroll or a flat per-employee fee of roughly $80–$200 per month, and it tends to drop as headcount grows. The fee often replaces separate payroll, HR and benefits-administration costs you already pay.
How do PEOs save you money?
PEOs pool thousands of employees to negotiate lower health insurance and workers' comp rates than a small business can get alone, and they take on HR, payroll and compliance work so you need less in-house staff. Your net saving is what's left after the PEO's fee.
Do PEOs really lower workers' comp costs?
Often, yes, especially in higher-risk industries. Workers' comp is priced as a rate per $100 of payroll based on your job classes, and a PEO's master policy can offer better rates, pay-as-you-go billing with no large deposit, and claims handling. For low-risk office work the savings are smaller.
Is a PEO cheaper than hiring an HR person?
Often. A fully loaded HR employee can cost well over $100,000 a year in salary and benefits. A PEO spreads HR, payroll and compliance across a team for a per-employee fee that's often less than a single in-house hire, and you still get a dedicated contact.
When is a PEO not worth it?
A PEO may not pay off if you already run very lean HR, already have large-group benefits pricing, or are very small with minimal compliance needs. The calculator tells you when a PEO likely isn't worth it, not just when it is.
How many employees do you need to use a PEO?
Most PEOs work with businesses starting around 5 employees, and the value often grows through the 10–100 range. Many PEOs also serve companies with several hundred employees.
What is the ROI of using a PEO?
Research from NAPEO puts the average return on investment of using a PEO around 27%, with typical savings near $1,775 per employee per year. Your actual ROI depends on your industry, benefits and current costs.
Are PEO fees tax deductible?
Generally, yes. PEO fees are an ordinary business expense, and the wages, benefits and taxes handled through a PEO stay deductible as before. This isn't tax advice, so confirm with your accountant.
Is the calculator free?
Yes. Enter the six basics and your work email, and you'll see your estimate right away, with the full line-by-line report sent to your inbox. No credit card and no obligation.
Keep exploring
Your next step.
Free tool
Benchmark your benefits
See how your health, dental, vision and 401(k) compare to companies your size.
Run the benchmark →
PEO 101
What is a PEO?
A plain-English guide to how PEOs work and who they're for.
Read the guide →
Proof
See real results
Case studies with before-and-after numbers, line by line.
See the case studies →
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