Practical use cases
- Estimating the average cost to make a hire over a defined period.
- Comparing cost per hire across periods, channels or role groups on a consistent basis.
- Informing recruitment budgeting and build-vs-outsource conversations.
Calculator
Works entirely in your browser — nothing is sent, saved or tracked. Results update as you type.
How it works
The formula is:
Total hiring costs ÷ Total number of hires
Total hiring costs = internal costs + external costs for the same period. Decide once what belongs in each bucket and apply it consistently — the figure is only comparable when the cost definition does not move.
Worked example: If internal costs were 20,000 and external costs 30,000 for 10 hires, cost per hire is (20,000 + 30,000) ÷ 10 = 5,000 per hire.
For the full background — what it measures, why it matters and how to read it — see the cost per hire guide.
How to read the result
Cost per hire is an average, so a few unusually expensive or cheap hires can move it. Read it with the number of hires behind it and with quality of hire — the cheapest hire is not automatically the best value if it does not last or perform.
What you include defines the number. A figure that counts only external spend is not comparable to one that also values internal time. State your cost definition whenever you report it.
Common mistakes
- Counting only external spend and ignoring internal time, then comparing to a fuller figure.
- Changing what is included in costs between periods.
- Dividing by a different population than the costs cover (e.g. costs for all roles, hires for one team).
- Treating a low cost per hire as success without checking quality of hire and retention.
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