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Cost per Hire Calculator

Calculate cost per hire the way the SHRM and ANSI standard defines it, with internal and external recruiting costs separated. Every number on this page is calculated in your browser and never leaves your device.

External costs

Internal costs

Hires

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Four quarters on one page

Cost per hire swings with hiring volume, so one quarter on its own is hard to act on. The HRAnalyst™ Workbook is a printable tracker for every calculator on this site, with the formula, the recommended cadence and space for four quarters. Join the list and we will send it, along with new calculators and workforce analytics as they publish.

Formula used

How do you calculate cost per hire?

Cost per hire = (total external costs + total internal costs) / total hires

External costs = agency fees + advertising + screening + travel and relocation + other external

Internal costs = recruiting staff compensation + referral bonuses + recruiting software + other internal

The denominator is hires who started, not offers extended. Counting internal costs is what makes the figure comparable to anyone else's, and it is the part most calculations leave out.

Common mistakes with cost per hire

Leaving out internal costs entirely.

Recruiter time is usually the largest single input and the one most often excluded. A cost per hire built only from agency invoices and job board spend is not comparable to anyone else's number.

Dividing by offers rather than accepted hires.

The denominator is hires who started, not offers extended. Using offers understates the cost of a role with a low acceptance rate, which is precisely the role you need the number for.

Comparing across very different role types.

An executive search and a high volume hourly requisition belong in separate calculations. A blended figure across both describes no actual hiring situation.

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