Through Our Recruiting Best Practices

Calculate Your Recruiting Cost Per Hire

Free Recruiting Cost Per Hire Calculator

Download your free Cost Per Hire Calculator spreadsheet to understand your total cost to hire. You can also learn more about Cost Per Hire and recruiting calculations below. If you’d like to use our Recruiting Cost Ratio Calculator, then click here.


What is Cost Per Hire?

The cost per hire metric was created to measure the costs associated with sourcing, recruiting and staffing. These costs are the activities that employers take to fill open positions within their organization. Cost per hire is a ratio of the total dollars spent for both internal and external activities for the total number of hires during a specific time period.

How to Calculate Cost per Hire

The easy way to do this is by downloading the spreadsheet at this link.

This shows you all of the inputs you need to quickly calculate your cost per hire. But if you want to start from scratch, then it’s simple. You just need to add up all of your internal and external recruiting costs, and then divide by the total number of hires.

What are internal costs?

Internal costs for the cost per hire calculation include:

  • Salary, benefits, bonuses and career development of your internal recruiting team
  • Software and hardware costs: applicant tracking system, interviewing software, etc.
  • Other fixed costs such as employee referrals, government compliance, etc.

What are the external costs?

External costs for the cost per hire calculation include:

  • Third party fees such as contract recruiters and staffing agencies
  • Job marketing costs such as job postings, job boards, pay for performance job advertising, and social media
  • Career fairs and college campus recruiting
  • Travel expenses for recruiting
  • External assessments such as background checks and drug tests

Now what?

Once you’ve determined all of the costs, then you can use this formula to determine your cost per hire:

Cost per Hire ($) = [Total External Costs] + [Total Internal Costs] / Total Number of Hires


If you’d like a simpler way of determining your cost per hire then download our free Excel Cost Per Hire Calculator at the button below.

Download Your Free Calculator!