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MSP outsourcing cost calculator

Model internal, outsourced and hybrid costs from your own workload and quote assumptions, with complete inputs and transparent formulas.

Workload
Internal team
Outsourced quote
Hybrid assumptions

Every amount is required for a complete model. If a fee is unknown, obtain it before interpreting the result. Enter 0 only when it is confirmed not applicable. Annual growth is handled by editing workload into a separate scenario; it is not silently applied to the first-year formula.

How the model works

Annual workload hours = (monthly tickets x ticket minutes + monthly alerts x alert minutes) / 60 x 12. Workload FTE = workload hours / productive annual hours. Coverage FTE = weekly coverage hours / 40 x minimum staffed seats. Internal FTE is the greater value. This is a simplified staffing model, not a shift roster.

Loaded annual salary = salary x (1 + payroll burden + benefits and overhead). Internal recurring cost adds management and tooling; year one adds recruiting and training.

Outsourced monthly cost is the greater of the minimum or base plus usage, dedicated staffing, after-hours and overage fees. Annual recurring adds retained management; year one adds onboarding. Avoid double-counting usage already included in a base quote.

Hybrid internal FTE is the greater of allocated workload FTE or the retained FTE floor. Hybrid recurring cost combines its loaded salary, the allocated outsourced recurring cost and duplicate tooling. Year one adds onboarding and transition. Proportional outsourced allocation is an assumption: a real provider minimum may not scale down. Hybrid management must be represented in loaded cost or the quoted allocation.

The model excludes taxes, currency conversion, financing and productivity changes unless you include them in your assumptions. A cost difference is not guaranteed savings. Per-user and per-endpoint outputs are omitted when the denominator is zero.

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