Office vs Remote Savings Calculator
Net savings going remote.
Project yearly savings from moving a team remote versus office after accounting for remote stipends and any productivity adjustment.
What this tool does
This calculator models the annual financial impact of transitioning from office-based to remote work. It combines the cost savings from eliminating office expenses against the cost of remote work stipends, then adjusts for any productivity changes. The result shows net savings or net cost in your currency. The calculation takes your employee count, annual office cost per person, remote stipend amount, expected productivity shift as a percentage, and average salary to estimate the overall financial outcome. The inputs that most influence the result are office cost per employee and productivity impact—small changes to either can shift the total significantly. This tool is useful for modelling different remote work scenarios before implementation. Note that the calculation assumes productivity impact is measurable and uniform across staff, and does not account for secondary factors like recruitment, training, or long-term employee retention effects.
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Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Running an office costs a company 8,000-15,000 per employee per year and 4,000-8,000 elsewhere once rent, utilities, furniture, cleaning, and snacks are totalled. Remote work trades this for a home-office stipend (typically 500-2,000 one-off plus 50-150/month) and potentially some productivity impact. The savings calculation compares the three numbers against each other.
50 employees at 10,000/year office cost = 500,000. Remote stipend 2,000/year per person = 100,000. Productivity loss of 5% on 60k average salary = 150,000 in lost output. Net saving: 500k - 100k - 150k = 250,000/year going remote, or 5,000 per employee.
Productivity research is mixed and depends heavily on role type. Software engineers and writers often show productivity gains remote; sales and collaborative roles often show losses. Factor in your actual mix rather than using a blanket assumption. Also include hidden costs: lower office utilisation means landlord negotiating power is weaker, and you may still owe lease through contract term.
Quick example
With number of employees of 50 and office cost per employee of 10,000 (plus remote stipend per year of 2,000 and productivity impact of 5%), the result is 250,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Number of Employees, Office Cost per Employee, Remote Stipend per Year, Productivity Impact %, and Avg Employee Salary. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the option with the lower calculated total changes.
What's happening under the hood
Office savings = employees × (office cost - remote stipend). Productivity cost = employees × salary × loss %. Net = savings - productivity cost. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
What to do with a low result
A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.
What this doesn't capture
The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.
50 staff × ££10,000 office - ££2,000 stipend - 5% productivity = 250,000.00.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
The calculator computes net savings by first calculating gross office cost avoidance, then subtracting an estimated productivity cost. Gross savings equals the number of employees multiplied by the annual difference between office cost per employee and remote stipend. Productivity cost is modelled as the number of employees multiplied by average salary multiplied by the stated productivity loss percentage, treating the loss as a direct reduction in output value. Net savings is the gross figure minus productivity cost. The model assumes productivity loss remains constant and proportional to salary, that all employees transition at once, and that office costs are fully eliminated. It does not account for variable costs, transition expenses, tax effects, or non-linear productivity impacts.
References
Frequently Asked Questions
Is remote always cheaper?
What about hybrid?
How do I measure productivity loss?
Can I exit my office lease?
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