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HIRING · UNIT ECONOMICS

Cost Per Hire Calculator

Know what recruiting really costs — ads, agency fees, internal time, and onboarding per position filled.

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Result

COST PER HIRE
$14,300.00
TOTAL RECRUITING COST
$14,300.00
INTERNAL TIME
$3,300.00
EXTERNAL SPEND
$8,000.00

Cost build-up by category

Each lane adds to total recruiting cost.

Advertising
$2,000.00
Total recruiting cost: 2,000
Agency
$5,000.00
Total recruiting cost: 7,000
Referral
$1,000.00
Total recruiting cost: 8,000
Internal time
$3,300.00
Total recruiting cost: 11,300
Onboarding
$3,000.00
Total recruiting cost: 14,300
Methodology → Formula, assumptions, sources, and known limits.

How to use it

  1. Enter every cost tied to a hiring round: job board and advertising spend, agency fees, referral bonuses, internal recruiter hours and their hourly rate, interviewer hours and their hourly rate, onboarding costs, and the number of hires the spend produced. The internal-time inputs are where most founders undercount, because recruiter and interviewer hours are real labour cost even when no invoice is attached to them.
  2. Read total recruiting cost, cost per hire (total divided by the number of hires), and the breakdown across advertising, agency, referral, internal time, and onboarding. The breakdown is what makes the number actionable: a high cost per hire driven by agency fees has a very different fix than one driven by dozens of interviewer hours per candidate.
  3. Use cost per hire to judge whether your process is efficient or just expensive. If internal time dominates, the lever is a tighter funnel and fewer interview rounds, not a bigger advertising budget. If agency fees dominate, the question is whether the roles justify that premium or whether direct sourcing would pay back over the next few hires.
  4. Translate the figure into a budget decision by multiplying it across your planned headcount for the year. A cost per hire that looks tolerable for one role can become a five-figure line item across a hiring wave, which is the point at which investing in a repeatable internal process or an applicant tracking system starts to pay for itself.
  5. Re-run after each hiring round and track cost per hire as a trend by role type, since senior and specialist roles legitimately cost more than junior ones. Pair this with the employee cost tool to see the fully loaded cost of the person once hired, so the recruiting spend is judged against the value the role actually delivers.
Questions people usually ask
What decision is Cost Per Hire Calculator designed for?

Cost Per Hire Calculator helps teams calculate total recruiting cost per position from ads, agency fees, internal time, and onboarding. before committing budget, pricing, or operating changes.

How can I get decision-grade output quality?

Use validated baseline numbers, run downside and upside scenarios, and align assumptions with your real cadence and constraints.

Is this legal, tax, or accounting advice?

No. Outputs are business planning estimates and should be reviewed with qualified professionals when required.

Is this free and private?

Yes. Tools run client-side in your browser with no signup.

Related Resources

Learn the decision before you act

Every link here is tied directly to Cost Per Hire Calculator. Use the explanation, formula, examples, and benchmarks to pressure-test the calculator output from first principles.

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