HR & Recruitment calculator
Cost Per Hire Calculator
Calculate cost per hire from internal and external recruiting costs and the number of hires made in the same period.
FormulaCost per hire = (internal recruiting costs + external recruiting costs) / hires in the same period
Formula
Cost per hire
This is a planning metric. Define which recruiting costs are internal and external, and use the same inclusion rules for each comparison period.
Cost per hire = (internal recruiting costs + external recruiting costs) / hires in the same period
24,000 external costs plus 12,000 internal costs across 12 hires equals 3,000 per hire.
SourcesThis calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
Sources and assumptions
Source notes
This calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
- Effective year
- Current rules
- Last verified
- 2026-09-25
This is a planning metric. Define which recruiting costs are internal and external, and use the same inclusion rules for each comparison period.
Official and reference sources
Assumptions
- Internal and external costs are in one currency and cover the same period as the entered hires.
- Cost categories are applied consistently when comparing periods, roles or teams.
- The figure is an average across the entered hires, not the cost of each individual hire.
Not included
- Salary, ongoing employee cost, productivity ramp-up, replacement cost and quality-of-hire outcomes unless separately analysed.
- Benchmark claims, currency conversion, statutory payroll costs and organisation-specific accounting policies.
FAQ7 common questions for this calculator.
FAQs
What belongs in external recruiting costs?+
Examples include job advertising, agency fees, job-board spend, background checks, assessments, events and candidate travel.
What belongs in internal recruiting costs?+
Examples include recruiter and interviewer time, referral bonuses and allocated recruiting-system costs.
Should I include salary in cost per hire?+
This calculator focuses on the cost to recruit and hire. Treat ongoing salary and employment cost as separate workforce-cost measures unless your reporting policy explicitly includes them.
How does the Cost Per Hire Calculator calculate the result?+
For the Cost Per Hire Calculator, it uses the Cost per hire: Cost per hire = (internal recruiting costs + external recruiting costs) / hires in the same period. 24,000 external costs plus 12,000 internal costs across 12 hires equals 3,000 per hire.
What information do I need to use the Cost Per Hire Calculator?+
For the Cost Per Hire Calculator, enter internal and external recruiting costs and the number of hires made in the same period. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.
How accurate is the Cost Per Hire Calculator?+
Cost Per Hire Calculator is accurate for the values and assumptions entered on this page. It uses the Cost per hire. Recheck the inputs before relying on the estimate.
What should I check before using the Cost Per Hire Calculator result?+
For the Cost Per Hire Calculator, check that the units, inputs, and assumptions match your situation. Change one input at a time to understand which values have the largest effect on the result.
RelatedNearby hr & recruitment calculators for the next step after Cost Per Hire Calculator.
HR & Recruitment guide
How to use the Cost Per Hire Calculator
Calculate cost per hire from internal and external recruiting costs and the number of hires made in the same period. The page also explains the cost per hire and shows a practical example: 24,000 external costs plus 12,000 internal costs across 12 hires equals 3,000 per hire.
- 1
Total external costs
Add recruitment advertising, agency, assessment and candidate expenses for the reporting period.
- 2
Allocate internal costs
Include recruiter and interviewer time and shared recruiting costs once, using a consistent accounting policy.
- 3
Match the hires
Divide by hires for the same period and compare similar role groups. A low cost does not by itself imply a good hire.