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How it works

Cost per hire calculator

Cost per hire is what you spent on recruiting in a period divided by the number of people you hired in that period. The spending splits into internal costs, such as your own staff's time, and external costs, such as job ads and agency fees.

Enter yours below to get the figure and see which costs make up most of it.

The figures filled in are examples so you can see how it works. Replace them with your own numbers. Nothing you type leaves this page.

The period you're measuring

People who started in the period, for example last quarter or last year. Use the same period for every cost below.

Internal costs

Writing ads, screening, scheduling, offers.

Your applicant tracking system or job board subscriptions for the period.

External costs

Your estimate

Cost per hire

$1,140

Internal costs
$3,900
External costs
$1,800
Total recruiting cost
$5,700
Hires
5
Recruiting and HR time40 hrs × $35
$1,400
Hiring manager time20 hrs × $50
$1,000
Referrals, software and other internal
$1,500
Ads and job boards
$1,500
Agency or recruiter fees
$0
Checks, tests, events, travel and other
$300
Total recruiting cost
$5,700

Estimates for planning only, based on the numbers you entered.

How this is calculated

Every figure comes from the numbers you enter. Nothing is filled in from averages or outside data.

Internal costs
recruiting hours × hourly cost + manager interview hours × hourly cost + referral bonuses + recruiting software + other internal
External costs
job ads + agency fees + background checks and drug tests + assessments + hiring events + travel and relocation + other external
Cost per hire
(internal costs + external costs) ÷ number of hires

Count costs and hires from the same period. A new hire's own salary and benefits are pay, so leave them out of recruiting costs. If a tool or subscription covers more than the period you're measuring, include only the share that falls inside it.

Making the number useful

  • Work it out by role

    One average across every job hides a lot. You find electricians and customer service representatives in different places at different prices, so run the calculator once for each job family.

  • Count staff time

    Internal time is easy to leave out because no invoice arrives for it. Log the hours you spend on one hire and you'll have a usable figure for the next.

  • Look past the cheapest source

    A low cost per hire isn't a saving if those hires leave in the first month. Put it next to your turnover cost before you drop a source.

  • Compare agency fees fairly

    An agency fee can replace ad spend, screening hours and part of the hiring manager's time. Run the numbers with and without the agency to see the real difference, and read recruitment agency vs in-house hiring for when each one fits.

Want help filling the role?

Send us the role, the location and the pay range. You pay a recruitment fee only when a successful candidate is hired, subject to agreed terms.

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