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Cost Per Hire Calculator

The vacancy usually costs more than the recruitment.

Work out Cost Per Hire. The vacancy usually costs more than the recruitment. Names the misconception directly.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these

Cost per hire

7,180

35,900 across 5 hires · vacancy cost 24,000 per role

Cost per hire7,180
Total recruitment cost35,900
External costs23,000
Internal costs12,900
Cost of the vacancy itself24,000
As a share of salary16%
Agency fees20,000 — 55.7% of the total
Advertising3,000 — 8.4% of the total
Recruiter time8,000 — 22.3% of the total
Interviewer time2,400 — 6.7% of the total
Onboarding2,500 — 7% of the total

The cost of the vacancy is usually larger than the cost of filling it, and it is the line almost every calculation omits. A role left open for two months has cost two months of whatever that role produces, on top of every recruitment fee. Internal costs are real even though no invoice arrives. Recruiter time, interviewer hours and onboarding are all paid for in salaries already on the books, and leaving them out makes agency fees look worse than they are. Cost per hire is a poor measure on its own. Hiring cheaply and badly costs far more than hiring expensively and well, because the cost of a bad hire — including the second recruitment — routinely runs to a multiple of the salary.

How the Cost Per Hire Calculator works

Cost per hire split between internal and external, with the cost of the vacancy itself. That last figure is usually larger than the recruitment cost and is the line almost every calculation omits.

Also known as: how much does hiring cost · recruitment cost per employee · cost of an unfilled role · agency fee versus internal hiring

Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.

Frequently asked questions

What is a typical cost per hire?

Widely quoted between 3,000 and 5,000 for general roles, and considerably more for senior or specialist positions where agency fees run to 20 to 30% of salary.

What does the vacancy itself cost?

Whatever the role produces, for however long it is open. A role left unfilled for two months has cost two months of output on top of every recruitment fee — and it usually dwarfs them.

Should internal costs be counted?

Yes. Recruiter time, interviewer hours and onboarding are paid for in salaries already on the books, and leaving them out makes agency fees look worse than they are.

Is a lower cost per hire better?

Not on its own. Hiring cheaply and badly costs far more than hiring expensively and well, because a bad hire routinely costs a multiple of the salary once the second recruitment is counted.

How do I reduce it?

Referral schemes, a talent pipeline and a faster process. Speed matters twice — it cuts the vacancy cost and it wins candidates who would otherwise accept elsewhere.

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The one-line version
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