Cost Comparison: Hiring a Full-Time Paralegal vs. Virtual Paralegal Assistant

For law firms today, controlling staffing costs while maintaining high-quality support is critical. One of the most important decisions attorneys face is whether to hire an in-house paralegal or to outsource legal administrative work to a virtual paralegal assistant. This decision is not just about headcount — it’s about total cost, flexibility, and firm profitability.

In this blog, we break down the true financial comparison between a full-time paralegal and a virtual paralegal assistant — based on real data and cost structures — so you can make the most informed choice for your practice.

Full-Time Paralegal vs. Virtual Paralegal: Cost Comparison for Law Firms

1. What is the True Cost of a Full-Time Paralegal?

When law firms budget for a full-time paralegal, they often start with salary — but that’s just the beginning.

Base Salary

According to the U.S. Bureau of Labor Statistics, the median annual wage for paralegals and legal assistants was $61,010 in May 2024.

This figure represents the median wage — meaning half of paralegals earn more, and half earn less — but it does not include additional expenses employers incur.

Employer Payroll Taxes & Benefits

Employers must also pay payroll taxes (Social Security, Medicare, and unemployment taxes), retirement contributions, and often health insurance or other benefits. These costs can add 20%–30% or more to base salary, depending on the benefits package.

Overhead & Operational Expenses

In-office employees require:

• Office space and utilities

• Computer equipment and software licenses

• Case management and legal research tools

• Supervisory time and onboarding/training

These indirect costs can add tens of thousands of dollars per staff member annually. Industry-published estimates show that overhead and benefits can raise the true cost of a full-time paralegal to $75,000–$110,000+ per year when fully loaded.

2. Cost of a Virtual Paralegal Assistant

In contrast to fixed employment costs, virtual paralegal assistants are typically contracted on an hourly basis or through a service retainer.

Hourly Rates

Virtual paralegals commonly charge between $25 and $75 per hour, depending on their expertise and the complexity of the task.

This range often reflects skilled legal support without requiring law firms to cover payroll taxes, benefits, or overhead.

Project and Monthly Pricing

For ongoing support, many virtual paralegal assistants offer retainer pricing, such as $1,000 to $3,000 per month for a set of hours.

This model lets law firms plan costs while still paying only for the time and work actually needed.

Independent Virtual Assistant Rates

Broader virtual assistant salary data shows an average of around $26.63 per hour in the U.S. for administrative virtual support roles.

While not specific to paralegal work, this data illustrates the lower hourly cost structure of remote assistants that firms can leverage for administrative legal tasks.

3. Side-by-Side Cost Comparison

Cost Category	Full-Time Paralegal	Virtual Paralegal Assistant
Annual Base Salary	~$60,000+	Pay-as-you-go (hourly or retainer)
Payroll Taxes & Benefits	Yes	No
Office & Equipment	Yes	No
Onboarding & Training	Yes	Minimal
Scalability	Fixed cost	Flexible cost
Total Annual Cost	$75k–$110k+	$16k–$40k+ (usage-based)

The math is simple: a full-time employee represents a fixed cost, whether the firm’s workload is high or low. A virtual paralegal assistant, by contrast, is a variable expense that scales with actual need.

In one example analysis, a virtual paralegal working 480 hours at $45/hour would total $16,800 annually, compared to nearly $77,000 in costs for a full-time employee once overhead and benefits are included, yielding savings of over $60,000 per year.

4. Cost Per Productive Hour

With a full-time employee, you pay for 2,080 hours per year (40 hours/week × 52 weeks), but not all hours are productive due to PTO, holidays, or training time.

With a virtual paralegal assistant, you pay strictly for billable or productive hours — periods when work directly advances your firm’s cases or administration.

This difference not only saves money but also increases cost efficiency per hour worked.

5. Fixed vs. Variable Cost: Financial Impact

From a firm’s financial perspective:

• Fixed costs, such as salaries and benefits, reduce flexibility and increase risk during slow caseloads.

• Variable costs, such as virtual paralegal services, allow firms to adjust staffing based on workload, avoiding the cost of unused capacity.

This financial agility can improve cash flow, protect profit margins, and make budgeting more predictable.

6. ROI: Beyond Cost Savings

Hiring a virtual paralegal assistant isn’t merely about paying less — it’s about maximizing return:

• Attorneys spend more time on billable work instead of administrative tasks

• Firms avoid long-term employment liabilities

• Outsourced professionals often arrive with specialized expertise

Plus, legal outsourcing benefits extend beyond cost. Firms can access a broader talent pool, reduce administrative burden, and maintain quality support without the headaches of HR and overhead management.

7. When Each Option Makes Sense

Full-Time Paralegal:

• Consistent, predictable workload
• Need for daily face-to-face collaboration
• High administrative demand year-round

Virtual Paralegal Assistant:

• Fluctuating or cyclical workloads
• Need specialized or project-based support
• Desire to reduce overhead and increase flexibility

Conclusion: Cost-Smart Legal Support

For many law firms, especially solos and small practices, the financial advantages of virtual paralegal assistants are compelling. By eliminating fixed overhead and paying only for the work they need, firms can significantly reduce expenses while maintaining professional support.

Hiring a full-time paralegal may make sense in certain high-volume environments. But for most firms seeking efficiency and cost control, virtual paralegal support offers a smarter financial strategy.

Want Help Estimating Your Firm’s Exact Savings?

Calculate your unique cost comparison or schedule a consultation today — start maximizing efficiency without increasing headcount.