Transparency
ROI calculator methodology
The Agensee’s ROI calculator reveals the true total cost of recurring work in your business, then compares it to Avelle. This page publicly documents our sources and method — because transparency is central to our positioning.
Why a “total cost” calculator
Most SMB owners think an employee’s cost is their salary. In reality, salary is only 55–70% of the total cost. The rest — payroll taxes, benefits, space, software, recruitment, absences — is rarely counted, yet it adds up to tens of thousands of dollars per employee every year.
Our calculator is built to surface those hidden costs. It draws on a concept well established in finance and HR: the Total Cost of Employment (TCE), also called the “fully-loaded cost.”
The components of total cost
Each component rests on a published source. Here is how we estimate it:
1. Payroll and benefits
According to the US Bureau of Labor Statistics (2024), benefits represent approximately 31% of total compensation in the private sector. In Canada, employer contributions (CPP/QPP, EI, QPIP, etc.) add 14–18% on top of base salary, excluding benefits.
Source: US BLS — Employer Costs for Employee Compensation (2024) · Statistics Canada (SEPH)
2. Office space and utilities
According to CBRE (2024), total occupancy cost per employee ranges from roughly $4,500 CAD (regional markets) to $12,500 USD (major metropolitan markets like NYC or the Bay Area). Includes rent, utilities, and amortized furniture.
3. Software and SaaS licenses
According to Vendr (2024), companies spend an average of $7,800 USD per employee per year on SaaS licenses (Microsoft 365, collaboration tools, CRM, etc.), reaching up to $15,000 USD for knowledge workers.
4. Recruitment and training (amortized)
According to SHRM, the average cost per hire is about $4,000 USD, plus $1,500–3,000 USD in initial training. Amortized over an average 3-year tenure, this is roughly $2,000 per year per employee.
5. Absences and turnover
According to IBI and SHRM, the combined costs of unplanned absences (~3% of salary) and amortized turnover (~7% of salary) represent approximately 10% of base salary per employee per year.
Source: Integrated Benefits Institute (IBI) · SHRM Retention
Regional multipliers
Occupancy cost (space + utilities) varies sharply by market. We use three tiers based on CBRE data:
Canada (CAD)
| Tier | Regions | Annual cost per employee |
|---|---|---|
| 1 | Ontario (GTA), British Columbia (Vancouver) | $10,000 |
| 2 | Quebec (Montreal), Alberta (Calgary) | $7,000 |
| 3 | Other provinces and regional markets | $4,500 |
United States (USD)
| Tier | Regions | Annual cost per employee |
|---|---|---|
| 1 | NY, CA, MA, WA | $12,500 |
| 2 | IL, CO, TX, FL, DC, etc. | $8,500 |
| 3 | Other states and rural markets | $5,500 |
Calculation formula
For each employee, we sum the following components:
- Base salary (entered)
- + Payroll and benefits: salary × 30%
- + Office space and utilities: by regional tier (table above)
- + Software and SaaS licenses: $10,000 CAD / $7,500 USD
- + Recruitment and training (amortized): $2,000 CAD / $1,500 USD
- + Absences and turnover: salary × 10%
- = Total Cost of Employment (TCE) per employee, multiplied by the number of employees.
The share of time spent on recurring work (entered hours ÷ 40 h) is then applied to the total cost to isolate the cost of recurring work. Avelle is compared on an annual basis, with onboarding fees amortized over the 24-month minimum term.
How we interpret the results
The calculator presents two complementary savings framings:
Framing A — Avoided hire: if you had to add a support employee to absorb this growth, here is what it would cost. Avelle is the alternative.
Framing B — Current recurring cost freed: your current team spends N hours a week on recurring work. Here is what those hours cost (in proportional total cost). Avelle takes that work over, freeing your team for value-add tasks.
Important — our positioning
Avelle does not replace your employees. Avelle frees your team to focus on what truly grows your business. Every estimate is framed as a reallocation of capacity, never as a headcount reduction.
Limitations
- Estimates rest on published sector averages. Your reality may vary by ±20% depending on your cost structure.
- Regional multipliers are simplified into three tiers; markets within a tier vary.
- The opportunity cost of owner time is measured in hours, not dollars, for defensibility.
- Avelle prices (from $899 CAD / $699 USD per month) are those on the Pricing page at publication and may change.
For a precise analysis
The calculator gives a reliable order of magnitude for pre-discussion. For a precise analysis tailored to your situation, we offer a free 30-minute discovery call.