Free HR calculator
Agency vs In-House Recruiter ROI
Compare what you spend on recruiting agencies against the cost of an in-house recruiter. See your annual savings, the cost per hire each way, and the hiring volume where bringing recruiting in-house starts to pay off.
Before you start
What you will need. Hires per year, Average starting salary, Agency fee, Recruiter base salary
Your hiring
Your in-house recruiter
Advanced options
Recruiter capacity
Savings with an in-house recruiter
How the two compare
The method
Agency or in-house and how this is calculated
Recruiting agencies charge a fee for each hire, usually a percentage of the new hire’s first-year salary. The more you hire, the more you pay. An in-house recruiter is a fixed annual cost that does not rise much with volume. This tool compares the two. The agency route is your hires times the fee, and the in-house route is the recruiter’s fully loaded cost. The gap is your annual saving, and the crossover point is where in-house starts to win.
How this is calculated
What goes into each route
The agency route is hires per year times the average starting salary times the agency fee percent. Standard contingency fees run from 15% to 25%, with 20% typical and executive roles higher. The in-house route adds up the recruiter’s base salary, benefits, and the tools and job boards they need. If your volume is higher than one recruiter can fill, the overflow is priced at the agency rate so the comparison stays fair.
Reading the break-even
Break-even is the number of hires per year at which an in-house recruiter costs the same as paying agency fees. Below it, agencies are usually cheaper because you only pay when you hire. Above it, the fixed cost of a recruiter is spread across enough hires to beat the per-hire fees. That crossover is the single most useful number for deciding when to bring recruiting in-house.
What the dollars miss
Cost is only part of the decision. Agencies give you speed, a ready network, and a guarantee if a hire does not work out, with no fixed payroll. An in-house recruiter gives you a consistent candidate experience, a stronger employer brand, and a talent pipeline that compounds over time. Weigh those alongside the numbers.
Carry this into the decision
Model it across role types and years
The in-depth Excel version compares agency and in-house cost across role groups, handles overflow and multiple recruiters, and shows your savings over three years.
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Related
More free tools and the notes behind them
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
This tool estimates from the figures you enter. It is general information rather than legal, tax, or accounting advice, so check the result against your own records before you rely on it.