Cost Per Hire Calculator
Filling a role costs more than the job ad. Add your internal time and external spend, and this gives your true cost per hire on the SHRM and ANSI standard, with the internal versus external split.
The hires
External costs
Internal costs
Cost per hire
Where the cost comes from
How cost per hire is calculated
The formula is the SHRM and ANSI 2012 standard: total internal recruiting costs plus total external recruiting costs, divided by the number of hires in the period.
External costs
Money paid to outside vendors: job ads and boards, agency or recruiter fees, background checks and assessments, and referral bonuses. Agency fees are often the largest single driver, commonly 15 to 25 percent of first-year salary.
Internal costs
The time your own people spend hiring, costed at their pay rate, plus recruiting tools. The hardest part is estimating the hours, which is normal and expected in the standard.
- What is a normal cost per hire?
- The US average is about $4,700 to $5,475 for non-executive roles, per SHRM 2025. Executive hires average near $35,879. Smaller, simpler roles run lower.
- Should I include hiring manager time?
- Yes. The standard counts internal staff time as a real cost. Leaving it out understates your true cost per hire.
- How often should I measure it?
- Quarterly is a good cadence, or monthly if you hire at volume. Watch it alongside time to fill and early retention.
This calculator gives estimates only and is not legal, tax, or accounting advice. Recruiting costs vary by role, industry, and how figures are measured. Use it to plan, then confirm specifics for your situation.
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