Agency, freelancer or in-house: the actual cost math

Pros and cons are one thing. Numbers are another. Here is a concrete, simplified cost example that shows why the choice between agency, freelancer and in-house is rarely about which hour is “cheapest” on its own.

The example

Imagine a mid-sized webshop that needs roughly 15 hours of SEO work a week: technical maintenance, content and ongoing optimization. Here is how the three models can look, roughly calculated. The exact rates vary from market to market, so treat the figures as a Northern European reference point rather than a price list.

Agency An hourly rate of 160-240 euros is common for an established SEO agency. At 15 hours a week that comes to 2,400-3,600 euros a week, so 9,600-14,400 euros a month. In return you get access to several specialties under one roof, and the capacity to scale up if the need grows.

Freelancer An experienced freelance SEO consultant typically sits at 80-160 euros an hour. At the same 15 hours a week that comes to 1,200-2,400 euros a week, so 4,800-9,600 euros a month, often half the agency price for a comparable level of experience. The trade-off is a hard ceiling on how many hours one person can deliver in a week.

In-house A full-time SEO specialist in a market like Denmark typically costs 6,000-8,700 euros a month in salary, plus around 25-30 percent on top in pension, holiday pay and other employment costs, so roughly 7,500-11,300 euros all in. That buys you a full working week, far more than the 15 hours the task really requires, unless the person also handles other work.

What the math shows

At exactly 15 hours a week, a freelancer is often the cheapest option in pure money. But the math shifts quickly: if the need grows to 30-40 hours a week, in-house or an agency with more hands becomes relatively cheaper, because a single freelancer hits their capacity ceiling.

That is why the answer can never be “always the cheapest hour”. The right question is how many hours the task really requires right now, and whether that number looks like it will grow.

Run your own numbers

Know your real hourly need, rather than a guess. Compare the full price, including hidden costs like recruitment and onboarding for in-house, rather than the hourly rate alone. And remember that the need is rarely static. What makes sense today can look different a year from now.

The broader guide to agency, freelancer and in-house covers the qualitative trade-offs alongside the cost model.