Cost per Hire Calculator

Cost per hire adds everything spent on recruiting in a period, both money paid to outside parties and the cost of your own recruiting team, and divides it by the hires made.

Also called: Recruitment cost calculator · Hiring cost calculator

  • Last updated
  • Formula tested against reference values

Your numbers

Background checks, assessments, candidate travel, relocation.

Share of recruiter pay and tools for the period.

Interviewer time, referral bonuses, events.

Result

Cost per hire
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Calculating…

Total recruiting cost
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External costs
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Internal costs
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How to use this calculator

  1. Enter or choose advertising and job boards.
  2. Enter or choose agency and search fees.
  3. Enter or choose other external costs.
  4. Enter or choose recruiting team costs.
  5. Enter or choose other internal costs.
  6. The cost per hire updates as you type. Use Copy result or Share to keep it.

Method

Cost per hire = (External costs + Internal costs) ÷ Hires

External costs
money paid to outside parties
Internal costs
your own recruiting staff and related spending
Hires
hires that started in the same period

Worked example

  1. External = 3,000 + 15,000 + 2,000 = $20,000; internal = 20,000 + 5,000 = $25,000.
  2. Cost per hire = 45,000 ÷ 10 = $4,500.

Spending $45,000 on recruiting to make 10 hires is a cost per hire of $4,500.

What the result means

Track the figure over time and by role type. A rising agency share usually drives cost per hire up; comparing with the salary of the role gives a sense of proportion.

Assumptions and limits

  • Costs and hires cover the same period.
  • It measures cost, not quality: a cheap hire who leaves in three months may cost more in the end.

Questions

Should internal costs be included?

Yes. The widely used cost-per-hire standard counts both external and internal costs; leaving out recruiter pay makes in-house recruiting look free.

Which hires count?

Hires made in the period you measured costs for. Some teams split internal moves from external hires and report each separately.