What does an in-house estimator really cost?
Short answer: Roughly $100,000–$130,000+ per year, fully loaded.
Salary is only part of it. Payroll taxes, workers' comp, benefits, PTO, training and software seats add up fast, whether or not the claims are flowing. During slow months you still carry the full cost.
What does outsourced estimating cost?
Short answer: $150 or 1% of each approved estimate, whichever is higher. No overhead, no Xactimate seat, no training.
Annual cost = estimates per month × 12 × fee per estimate, where the fee per estimate is the higher of $150 or 1% of the average approved estimate.
How do the numbers compare?
The scenarios below are illustrative examples using our published estimating formula. They are not client data. In-house cost uses the low end ($100,000) of the range above.
| Example scenario | Estimates / month | Avg. approved estimate | Fee per estimate | Outsourced / year | In-house / year (low end) | Difference |
|---|---|---|---|---|---|---|
| Example 1: Small shop | 8 | $8,000 | $150 | $14,400 | $100,000 | $85,600 |
| Example 2: Growing shop | 15 | $12,000 | $150 | $27,000 | $100,000 | $73,000 |
| Example 3: Larger jobs | 15 | $25,000 | $250 | $45,000 | $100,000 | $55,000 |
| Example 4: High volume | 30 | $20,000 | $200 | $72,000 | $100,000 | $28,000 |
Break-even, example: at a $150 fee, $100,000 a year equals about 667 estimates, or roughly 56 per month. At a $200 average fee, it's 500 estimates, or about 42 per month.
These figures cover estimating only. Supplements ($150 or 1% of new money) and claim support (3.5% of the final amount paid, minus the written baseline) are separate and optional.
Run your own numbers
- W-2 Employee (Annual)
- $100,000
- Redefined (Annual)
- $27,000
- $150 per estimate
- Your Annual Savings
- $73,000
Estimate only. Uses the published estimating fee. Does not include supplements or claim support. Your costs will vary.
When does an in-house estimator make sense?
Short answer: When you have steady, high volume and also want that person doing other jobs, like site walks, project management or customer communication.
An in-house estimator can do things a remote service can't, like walking the job. Many contractors use both: an in-house person for site work and outsourced writing for volume and overflow. We're an option, not the only answer.
What else should I weigh besides cost?
- Turnaround: typically 24–48 hours with us, depending on scope complexity
- Coverage: no gap when someone is sick, on vacation or quits
- Software: we write on our own Xactimate license
- Standards: water scopes documented to IICRC S500, mold aligned with S520; both owners IICRC certified
- Control: you approve every estimate and remove anything you don't want billed