Remote vs Office Cost Calculator

Compare the true cost of remote vs office work including rent, equipment, utilities, and productivity. See annual savings per employee.

Last updated: March 2026

A remote vs office cost calculator compares the true cost of remote work versus office space for your team. Office space costs $300 to $1,000 per person per month in major cities. Remote work eliminates commute costs worth $5,000 to $15,000 per employee in productivity.

Team Size

Monthly Office Cost Per Person ($)

Monthly Remote Work Stipend ($)

Average Commute Hours Per Person Per Month

Average Hourly Value of Employee ($)

Annual Savings (Going Remote)

$96,000

Productivity Gained (Commute Savings)

$240,000

Total Annual Benefit

$336,000

Savings Per Person

$16,800/yr

📊

How You Compare

Your monthly office cost per person is better than 50% of tech companies in major cities.

Industry typical: $300-1,000

Source: JLL Office Cost Benchmark 2025

💡 What This Means

🚀 Going remote saves $336,000/year including productivity gains. That's $16800 per person — enough to fund generous remote work stipends.
💰 Office costs: $120,000/year. Remote stipends: $24,000/year. Pure cost savings: $96,000.
💡 Hybrid (2-3 office days/week) gives 60-70% of the cost savings while maintaining in-person collaboration. Consider hot-desking to reduce office footprint by 40%.

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What is Remote vs Office Work Cost?

Remote vs office cost comparison evaluates the total expense of maintaining an office-based workforce against a remote or hybrid model. Office costs include rent, utilities, equipment, facilities management, and insurance. Remote costs include equipment stipends, internet allowances, and co-working budgets. Factor in total employee costs with the Employee Cost Calculator and meeting productivity with the Meeting Cost Calculator.

The Formula

Office Cost per Employee = (Annual Rent + Utilities + Equipment + Facilities + Insurance) ÷ Number of Employees
Remote Cost per Employee = Equipment Stipend + Internet Allowance + Co-Working Budget

Worked Example

A 20-person company: £120,000 annual office costs (rent, utilities, facilities) vs £2,000/year remote stipend per person.

Office cost per employee = £120,000 ÷ 20 = £6,000/year
Remote cost per employee = £2,000/year
Savings per employee = £6,000 − £2,000 = £4,000/year
Total annual savings = £4,000 × 20 = £80,000

📌 Going fully remote saves £80,000/year (67% reduction in workspace costs). Even a hybrid model with 50% office reduction saves £40,000-50,000.

Why This Matters

Talent pool expansion

Remote work enables hiring from anywhere, not just commuting distance from your office. This expands your talent pool 10-100x and often allows hiring the same quality talent at 20-40% lower salaries in lower cost-of-living areas.

Employee benefit

Remote workers save £3,000-5,000/year on commuting, work clothes, and lunches. This is effectively a pay rise without increasing your costs — improving satisfaction and retention at zero expense to the company.

Common Mistakes

❌ Not budgeting for remote infrastructure

Remote work isn't free. Good home office equipment (£500-1,000), reliable internet (£30-50/month), cybersecurity tools, and collaboration software are essential. Budget £2,000-3,000 per remote employee in year one.

❌ Ignoring collaboration costs

Remote teams need quarterly in-person meetups (£500-1,000 per person per event) and better collaboration tools (£20-50 per person/month). These costs partially offset office savings but are typically 30-50% cheaper than maintaining an office.