Cost Per Hire Calculator
Find the average recruiting cost per hire.
How cost per hire works
Cost per hire is the standard recruiting KPI reported to leadership: the average total cost of filling one open position, combining external and internal recruiting spend.
Enter external recruiting costs (agency fees, job ads, background checks), internal recruiting costs (recruiter time, referral bonuses, internal systems), and the number of hires made. The calculator returns the average cost per hire.
This mirrors the widely referenced SHRM cost-per-hire definition. Define what counts as "internal" vs "external" cost consistently across periods so trends stay comparable.
The formula
Cost per hire = (External costs + Internal costs) ÷ Hires
Add external and internal recruiting costs together, then divide by the number of hires made in the period.
Worked example
$8,000 external + $2,000 internal costs, 10 hires
($8,000 + $2,000) ÷ 10 = $1,000 cost per hire.
Frequently asked questions
What counts as an external recruiting cost?
Typically agency and headhunter fees, job board postings, background checks, and any third-party recruiting service spend.
What counts as an internal recruiting cost?
Recruiter and hiring-manager time (often estimated), referral bonuses, applicant tracking system costs, and internal recruiting-team overhead allocated to the period.
How is this different from Time to Fill?
Cost per hire measures spend per hire. Time to Fill (a separate calculator) measures speed — how long it takes to fill a role. Track both for a complete recruiting picture.
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