MSP VS Internal IT Support Calculator

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At some point, most business owners with internal IT staff start to wonder if they’re getting what they’re paying for. The honest answer is: probably not as much as you think.

If you have a dedicated IT person or team, the calculator below will show you what that’s really costing you. If IT falls on whoever happens to be available, that’s a different conversation, but just as costly. We broke that down here.

The issue isn’t effort or intention. Most internal IT people work hard and care about their job. But one or two people can only cover so much. They get sick. They take vacation. They ask for raises. And as your business grows, the gaps start to show. Security, strategy, compliance, vendor management. It all adds up fast.

There’s another risk that doesn’t get talked about enough. Internal IT people build systems around what they know. When they leave, and eventually they do, they take that knowledge with them. No continuity, no documentation, no easy handoff. For a lot of businesses, that’s when things get expensive in a hurry.

So what does a better option actually look like? It starts with understanding where most businesses are coming from.

When it comes to managing IT, businesses generally fall into one of three categories:

Handling IT themselves:

Many small or growing businesses start here — managing IT on their own or leaning on a tech-savvy employee. It may seem like a way to save money, but it often leads to frustration, inefficiency, and downtime. Technology isn’t your primary job — and every hour spent wrestling with IT is time lost from your core business.

Having an internal IT person or department:

Some companies take the next step and hire an internal IT person or team. While this offers dedicated support, it also comes with high overhead — salaries, benefits, ongoing training — and a limited range of expertise. One or two IT staff members can only cover so much, and the needs of a growing business can quickly outpace what an internal team can handle.

Working with an MSP (Managed Service Provider):

If you’re already using an MSP, you’ve recognized the value of outsourcing IT. But not all MSPs are created equal — some are reactive rather than proactive, others aren’t as comprehensive or responsive as you need. If that’s been your experience, there’s a better way. 

The numbers are rarely what people expect. Most business owners quote the salary when asked what their IT person costs, but that’s only part of the picture. Benefits, payroll tax, equipment, and overhead compound quickly. Use the calculator below to plug in your actual numbers and see the full cost for yourself.

Loaded Cost Calculator
Base compensation
IT person salary
Base salary per IT employee
$85,000
Number of IT staff
Full-time internal IT employees
1
Taxes & insurance
Payroll taxes (FICA + unemployment)
Employer FICA 7.65% + FUTA/state; typical range 8–10%
9%
Workers' compensation
Office/IT role; typically 0.5–2% of salary
1%
Benefits
Health insurance
Employer contribution; typically 5–15% of salary
10%
Retirement match
401(k) or similar; typically 0–6%
3%
Paid time off
Vacation, holidays, sick days; 25 days ≈ 9.6% of paid time
9%
Other benefits
Dental, vision, disability, life insurance; typically 1–5%
2%
Tools, overhead & onboarding
Equipment & software
Laptop, licenses, security tools, per-user subscriptions/yr
$5,000
Overhead & space
Office, utilities, HR, admin, management time; typically 3–15%
8%
Recruiting & onboarding
Job ads, interviews, training ramp-up; typically 2–10%
5%
Your loaded cost breakdown
Base salary
Payroll taxes
Workers' comp
Health insurance
Retirement match
Paid time off
Other benefits
Equipment & software
Overhead & space
Recruiting & onboarding
Total / year 1.0x salary
— / month
See what effortless IT looks like A full team of specialists. No overhead, no sick days, no recruiting costs.
Effortless IT →

What Does This Mean for Your Business?

For many growing businesses, the math is clear: Building an internal IT department is expensive and scales linearly, adding more people = adding more cost. An MSP provides broader expertise and scalability — without the overhead of hiring and managing staff internally.

What IT Support Does for Your Business (And Why It Matters)

Choosing the right IT support is one of the smartest investments you can make in your business — just as important as investing in accounting, legal, or financial advisory services.

Here’s why:

It makes technology effortless.

You and your employees shouldn’t have to be IT experts to do your jobs. A great IT support team takes the tech burden off your plate so your business can run smoothly behind the scenes.

It lets you focus on what you do best

Whether you’re serving clients, building products, or running operations, IT issues are a distraction. The right support gives you back that time and focus.

It helps you scale.

Whether you have 5 employees or 100, an MSP can scale with you. No need to keep hiring more internal staff — you gain access to a full team of specialists as your needs grow.

Every Hour You Spend Doing IT Is an Hour You Are Not Building Your Business

It gives you broader expertise.

Technology moves fast. One person or small team can’t know it all. An MSP brings a wide bench of talent across cybersecurity, cloud, compliance, hardware, software, and strategic planning.

It’s cost-effective.

With a predictable monthly fee, you avoid the unpredictable costs of downtime, repairs, and lost productivity. Plus, it’s often far more affordable than building and managing an in-house IT department.

In short: IT support moves your business from Point A to Point B — from reactive and frustrating to proactive and effortless. And that kind of foundation is what helps businesses reach the next level. 

The Real Difference Between an MSP and Internal IT

There’s one more point that often doesn’t get talked about, but it matters.

A good MSP is fundamentally different from an internal IT department. For many internal IT staff, this is a job. Something they do well, but ultimately part of a career they’re managing. There’s nothing wrong with that, but it’s a different level of investment.

At a good MSP, it’s not just a job. It’s what these people want to do. The best MSP employees are passionate about technology and genuinely enjoy solving problems. They choose this work because they care about helping businesses succeed and take pride in delivering great service.

The work is not just about keeping systems running. It’s about taking genuine pride in solving problems and helping people. The best MSP employees care deeply about the experience they deliver, and take satisfaction in making a difference for the businesses they support.

In fact, a good MSP should be building real relationships, not just with the company’s leadership, but with the employees themselves. Over time, those bonds become a foundation of trust and collaboration, where employees feel comfortable reaching out for help, knowing they’ll get responsive, thoughtful support from people who know them and their business.

That said, not all MSPs are built the same. In recent years, many MSPs have become growth-hungry, more focused on acquiring small IT companies and scaling up revenue than on delivering great service. For small and mid-sized businesses, that often leads to a revolving door of account managers, inconsistent service, and a loss of personal connection.

Flexible IT is proud to be a Long Island-based MSP.

Excellent businesses have excellent IT.

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