Cost per hire calculator

Cost per hire (CPH) measures the average amount an organisation spends to fill a position. It is one of the core recruitment metrics for budgeting, comparing sourcing channels and making the case for recruiting tools or employer branding investments.

How to use the calculator

1. Enter internal costs for the period: recruiter salaries and benefits, time hiring managers spend interviewing, referral bonuses and internal tools.
2. Enter external costs: job board and advertising fees, agency fees, background checks, assessments, travel and relocation, and events.
3. Enter the number of hires made in the same period.
4. Read the cost per hire and the share of internal vs. external spending.

The formula

The SHRM/ANSI standard formula is CPH = (Total internal costs + Total external costs) / Total number of hires.

Worked example

In a quarter, internal costs are 45,000 (recruiter time, interviewer hours and ATS licence) and external costs are 63,000 (two agency placements, job ads and background checks). With 24 hires, CPH = 108,000 / 24 = 4,500 per hire. The two agency hires might account for 40,000 on their own, which shows where savings are possible.

Using the metric well

• Compare CPH by role level and department; executive hires naturally cost much more.
• Track it together with quality of hire and time to hire. A cheap hire who leaves in three months is expensive.
• Use the same cost categories every period so trends are meaningful.
• Calculate CPH per source to see which channels deliver the best value.