Free Cost Per Hire Calculator
Calculate the average cost per hire by dividing total recruiting expenses by the number of hires made during a period.
Cost Per Hire
$5,000.00
Cost Per Hire vs External Recruiting Costs (agencies, job boards, ads)
How to Calculate Cost Per Hire
Formula
Cost Per Hire = (External Costs + Internal Costs) / Total Hires
This metric follows the ANSI/SHRM standard formula. External costs include agency fees, job board postings, career fairs, and advertising. Internal costs cover recruiter compensation, ATS software, employee referral bonuses, and interview expenses. Tracking cost per hire helps you optimize recruiting budgets and compare sourcing channels.
Example Calculation
A company spent $30,000 on external recruiting and $20,000 on internal recruiting to make 10 hires.
- 01Total Recruiting Cost = $30,000 + $20,000 = $50,000
- 02Cost Per Hire = $50,000 / 10 = $5,000
- 03External Cost Share = $30,000 / $50,000 x 100 = 60%
Frequently Asked Questions
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