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24,000 to make 8 hires
External recruiting spend is 15,000. Internal recruiting cost is 9,000. You complete 8 hires in the same period. Keep each fee in one box.
External recruiting cost: 25% lower
Change external recruiting cost to 11,250 while keeping the other example values the same.
External recruiting cost: 25% higher
Change external recruiting cost to 18,750 while keeping the other example values the same.
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Quick answer
What does the Cost per hire calculate?
What does one hire cost after external and internal recruiting spend? This calculator uses external recruiting cost, internal recruiting cost, and hires to estimate recruiting cost per hire immediately in your browser.
With the values currently entered, the result is $3,000.00 — per hire. It also shows recruiting cost, external share, internal share, and hires.
How to use the Cost per hire
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- External recruiting cost
- Internal recruiting cost
- Hires — entered in hires
Cost per hire formula
Cost per hire = (external recruiting cost + internal recruiting cost) ÷ hires.
Assumptions
- SHRM describes cost-per-hire as recruiting costs divided by the number of hires. The published list includes agency fees, advertising, job boards, referrals, travel, relocation, recruiter pay and benefits, and talent systems.
- External cost is money paid outside. Internal cost is recruiter time and systems you assign to the search. A cost typed in both boxes is counted twice.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Describes cost-per-hire as recruiting costs divided by the number of hires. The listed costs include agency fees, advertising, job boards, referrals, travel, relocation, recruiter pay and benefits, and talent systems.
Hire employeesUS Small Business AdministrationScope: US small-business hiring; method is generalWalks through the cost of hiring, including taxes and benefits, and treats those extras as part of what an employee costs.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Cost per hire example and edge cases
SHRM describes cost-per-hire as the recruiting costs of a new hire divided by the number of hires. The published list includes agency fees, ads, job boards, referrals, travel, relocation, recruiter pay and benefits, and talent systems. This page adds the external total and the internal total you type, then divides by hires.
Example: 24,000 to make 8 hires
External recruiting spend is 15,000. Internal recruiting cost is 9,000. You complete 8 hires in the same period. Keep each fee in one box.
- External recruiting cost
- 15,000
- Internal recruiting cost
- 9,000
- Hires
- 8 hires
Calculated result$3,000.00per hire
Cost per hire is $3,000. Recruiting cost is 24,000. External spend is 62.5 percent of that total. Internal cost is the other 37.5 percent.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the cost per hire first. The two shares show where the 24,000 went. A heavy agency bill and a heavy in-house team can land on the same cost per hire.
- SHRM’s list is a menu of costs an employer may include. Your two boxes are the totals you decided belong in this period. A fee you leave out lowers the rate.
Edge cases worth checking
A signing bonus is in both cost boxes
External cost and internal cost are added. A 2,000 bonus typed in both places becomes 4,000 in the total. Put it in the box that matches who paid it.
Internal transfers are sitting in the hire count
SHRM’s hire count is people hired in the period. If 3 of the 8 moved from another team and you spent nothing to find them, the cost per hire falls. Count the hires that match the spend.
What changes the result most
External recruiting cost
Use a current amount for external recruiting cost. Include fees or recurring costs that belong in the same figure.
Internal recruiting cost
Use a current amount for internal recruiting cost. Include fees or recurring costs that belong in the same figure.
Hires
Change hires on its own first. This shows how strongly it affects the answer.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
External recruiting cost: 25% lower
11,250$2,531.25per hire
External recruiting cost: 25% higher
18,750$3,468.75per hire
Internal recruiting cost: 25% higher
11,250$3,281.25per hire
Common mistakes
Check external recruiting cost
SHRM describes cost-per-hire as recruiting costs divided by the number of hires. The published list includes agency fees, advertising, job boards, referrals, travel, relocation, recruiter pay and benefits, and talent systems. Make sure this matches the number you enter.
Keep hires consistent
External cost is money paid outside. Internal cost is recruiter time and systems you assign to the search. A cost typed in both boxes is counted twice. Use the same units and time period throughout the calculation.
Do not rely on one cost per hire scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What does one hire cost after external and internal recruiting spend?
It does not replace a quote, contract, accountant, or local employment guidance.