Cost Calculator AI
Business & StartupRecruiting KPI

Cost Per Hire Calculator

Calculate average recruitment efficiency by dividing internal talent acquisition staff time and external recruiting expenses across total new hires.

Internal Recruiting Staff Effort

External Agency & Placement Expenses

Cost Per Hire (CPH) Formula

Cost Per Hire (CPH) = (Total Internal Recruiting Costs + Total External Recruiting Costs) / Total Number of Hires
  • Internal Recruiting Costs: Internal recruiter salaries, hiring manager screening hours, and employee referral bonuses.
  • External Recruiting Costs: Third-party agency placement fees, job board subscriptions, candidate flights, and background screening.

Step-by-Step Worked Example

Scenario: Recruiting 4 new employees with $2,000 internal staff hours and $12,000 external agency/ad fees

Calculation Steps:

  1. Total Internal Costs = $2,000 (14.3%)
  2. Total External Costs = $12,000 (85.7%)
  3. Total Hiring Cost = $2,000 + $12,000 = $14,000
  4. Cost Per Hire (CPH) = $14,000 / 4 hires = $3,500.00 / hire
Result: Total hiring expenditure was $14,000 across 4 hires, producing an average Cost Per Hire of $3,500.

How to Use This Calculator

  1. 1Input external recruiting costs (agency placement fees, LinkedIn ads, candidate travel).
  2. 2Input internal talent acquisition hours and hourly rate.
  3. 3Enter the total number of successful hires completed during the period.

Assumptions & Limitations

  • Conforms to standard SHRM Cost-Per-Hire benchmarking standards.
  • Fixed recruiting software subscriptions are prorated for the period.

Frequently Asked Questions

What is a typical Cost Per Hire benchmark in the US?

According to SHRM, the average Cost Per Hire across US companies is approximately $4,129 for general staff and can exceed $15,000 to $25,000 for specialized technical or executive roles.

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