Before you begin Have your annual hiring volume, average starting salary, agency fee percentage, and recruiter compensation ready. This takes about two minutes.

Hiring details

Hires per year

Average starting salary

$

Agency fee

%

Enter the agency fee as a percentage of first-year salary. Contingency agency fees commonly range from 15% to 25%, with 20% as a planning reference. Rates vary by role and search.

Internal recruiting costs

Recruiter base salary

$

Benefits as a percentage of salary

%

Additional assumptions

Annual recruiting tools and job boards

$

Add your annual spending on your applicant tracking system, sourcing tools, and job boards.

Annual hires one recruiter can fill

Hires beyond the recruiter's annual capacity are included as agency placements.

Estimated annual savings with in-house recruiting

$0

Break-even: 0 annual hires

Agency recruiting costs

$0

In-house recruiting costs

$0

Recruiting cost comparison

Direct costs tell only part of the story. Also consider access to specialized candidates, flexibility during hiring peaks, candidate experience, and the value of your own talent pipeline.

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Email your recruiting cost comparison and assumptions.

How recruiting costs compare

What each recruiting approach costs

Recruiting agencies usually charge a percentage of each new hire’s first-year salary, so costs increase with each placement. An in-house recruiter has a relatively steady annual cost up to their hiring capacity. The calculator compares agency placement fees with recruiter pay, benefits, recruiting tools, and agency costs for hires beyond internal capacity. See which approach has the lower estimated cost at your hiring volume.

See the calculation

Calculate each option

Agency cost is annual hires multiplied by average starting salary and the agency fee percentage. In-house cost includes recruiter compensation, benefits, recruiting tools, and agency fees for hires beyond recruiter capacity.

Calculate break-even volume

Break-even is the annual hiring volume where both approaches have the same estimated direct cost. Under your assumptions, agency recruiting generally costs less below that point, while an in-house recruiter can generate savings above it. Once recruiter capacity is reached, the model adds agency fees for additional hires.

Look beyond direct costs

Agencies can help fill specialized roles and respond to hiring peaks. An internal recruiter can build candidate relationships, establish a consistent hiring process, and develop a long-term talent pipeline. Consider those benefits alongside the cost comparison.

Plan recruiting costs by role

Compare recruiting costs by role

Enter each role group separately with its hiring volume, average starting salary, and agency fees. Model multiple recruiters, agency placements beyond capacity, annual savings, break-even volume, and cumulative savings over time.

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Related resources

Calculators and research

Reference note How cost per hire is calculated Calculate cost per hire by dividing internal and external recruiting expenses by the number of hires in the same period.
Calculator Cost Per Hire Use internal and external recruiting expenses and the SHRM/ANSI formula to calculate cost per hire.
Calculator Recruiter Capacity Adjust recruiter workload for requisition complexity, then calculate the recruiters your pipeline needs, utilization, and the staffing gap.
Calculator Referral Program ROI Compare referral bonuses, agency and sourcing savings, net savings, and cost per referral hire.
Calculator Time-to-Fill Cost Estimate vacancy costs using the role's daily value, time to fill, and payroll savings.

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Compare this estimate with your records to help plan your next step.

Agency vs In-House Recruiter ROI