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In-House IT vs Managed Services Calculator

Cost out the IT team you would need to hire, using Chicago salary benchmarks, the benefits load on top of them and what it costs to fill each role. Then see it next to managed services at your headcount. Results are shareable via URL.

people

Used for the managed-services side, which is priced per user, and to suggest a starting team below.

30%40%

BLS Midwest private industry data for June 2026 puts benefits at 30.7% of total compensation cost. 35% is the midpoint of the band.

Who would you hire? (2 people)

We have filled in a conservative starting team. Adjust it to match what you would actually need — the numbers follow.

Help Desk Technician — Tier 1
Entry · $47,000–$57,000 · midpoint $52,000
1
Help Desk Technician — Tier 2
Mid · $55,000–$68,000 · midpoint $61,000
0
IT Support Engineer
Mid · $48,000–$78,000 · midpoint $61,000
0
Help Desk / Support Manager
Senior · $106,000–$147,000 · midpoint $130,000
0
Systems Administrator
Mid–Senior · $83,000–$130,000 · midpoint $103,000
1
Network Engineer
Mid–Senior · $67,000–$116,000 · midpoint $92,000
0
Network / Cloud Engineer
Senior · $141,000–$199,000 · midpoint $170,000
0
Database Administrator
Mid–Senior · $77,000–$177,000 · midpoint $132,000
0
Cybersecurity Engineer
Senior · $151,000–$279,000 · midpoint $198,000
0
IT Manager
Manager · $142,000–$168,000 · midpoint $155,000
0
IT Director
Director · $170,000–$250,000 · midpoint $209,000
0
Chief Information Officer
Executive · $157,000–$325,000 · midpoint $228,000
0
Compare against

Building it in-house

1 × Systems Administrator
$103,000 base each
$103,000
1 × Help Desk Technician — Tier 1
$52,000 base each
$52,000
Base salaries
$155,000
Benefits at 35%
$54,250
Hiring costs
one time
$15,000
First year
$224,250
Every year after
hiring costs drop out
$209,250

Comprehensive (DP3 model)

25 users
at $200/user/month
$60,000
25 users
at $300/user/month
$90,000
Per year
$60,000 – $90,000

Rates as published on how to choose an MSP. Actual pricing depends on scope, security requirements and whether vCIO advisory is included.

Managed service costs $134,250–$164,250 less in year one. In the years after, when hiring costs drop out of the in-house figure, the gap is $119,250–$149,250.

What this model leaves out

Every item below is a real cost of running IT in-house that the numbers above do not include. All of them push the in-house figure up.

  • Turnover. When a role turns over the firm pays to recruit and onboard again, plus lost productivity during the vacancy. The article names this as a real cost; no published rate is applied here, so the model simply omits it.
  • Tooling. RMM, ticketing, EDR, email security, backup and monitoring licences an in-house team would buy separately.
  • Training and certification, and the time staff spend on it.
  • Management overhead — the partner or office manager time spent supervising IT.
  • Coverage gaps. One or two people cannot cover nights, weekends, holidays and vacations.
  • Bonuses and incentive pay. These are base salaries only.

Salary benchmarks, benefits load and hiring costs are sourced and cited in The True Cost of In-House IT.

Figures checked September 30, 2026.

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