Recruitment cost per new hire. The Cost Per Hire Calculator takes internal recruiting costs (recruiter time, referral bonuses, tools), external costs (agencies, job boards, assessments), hires made and returns cost per hire plus total recruiting cost, external share of cost. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Payroll figures should follow the rules in your contracts and local law. Where a rule differs between states or countries, adjust the inputs; the calculator shows its assumptions so you can check them against your own policy. Use the worked example below to check the maths against your own figures.
How the Cost Per Hire Calculator works
Cost per hire varies from a few hundred dollars for hourly roles to a large fraction of salary for executives. Comparing channels (referrals, boards, agencies) on this basis shows where the money works.
Worked example
With the example values (internal recruiting costs (recruiter time, referral bonuses, tools) of $30,000, external costs (agencies, job boards, assessments) of $45,000, hires made of 10), the cost per hire is $7,500.00; total recruiting cost $75,000.00, external share of cost 60%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is cost per hire calculated?
cost per hire = (internal + external recruiting costs) ÷ hires.
Which figures do I need?
Internal recruiting costs (recruiter time, referral bonuses, tools), external costs (agencies, job boards, assessments), hires made. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Do the rules differ by location?
Yes. Statutory rates, ceilings and eligibility conditions vary by country and often by state. Adjust the inputs to your jurisdiction and confirm with your payroll provider or labour law adviser.
