Free HR calculator
Temp-to-Hire Breakeven Calculator
Compare first-year costs for direct hire, temp-to-hire, and direct placement. See whether converting a worker now or waiting for the fee waiver costs less under your agency terms.
About this calculator
Research note: What contingent labor costs Reviewed
What to expect You will need the salary, temporary pay rate, weekly hours, trial length, and agency fee terms. The comparison takes about two minutes.
Your pay rates and agency terms
First-year cost comparison
Cost breakdown by hiring option
Compare converting now with waiting
Email your results
Email yourself a copy of your cost comparison and inputs.
How the calculation works
What each hiring option includes
Each first-year cost comparison starts today. With direct hire, the employee joins your payroll from day one. With temp-to-hire, the worker starts through the staffing agency, then moves to your payroll with any applicable conversion fee. With direct placement, the employee joins your payroll immediately, with an agency placement fee commonly cited at 15% to 25% of first-year salary, often around 20%.
See the calculation
How the conversion fee changes
Published vendor examples show starting conversion fees of 10% to 25% of first-year salary, with waivers after approximately 520 to 1,000 hours or more. The calculator models a steady reduction in the conversion fee as assignment hours accumulate, including hours already completed. The workbook also handles fees that remain fixed until the waiver threshold.
When early conversion saves money
Waiting can reduce the conversion fee. When the agency rate exceeds direct payroll, each additional agency hour also adds cost. The calculation compares that additional hourly cost with the conversion fee reduction earned during the same hour. Converting now costs less when the additional agency cost per hour exceeds the fee reduction per hour. Waiting for the waiver costs less when the fee falls faster than the extra agency costs add up. The comparison shows the difference using your rates.
Other factors in your decision
Alongside first-year cost, consider recruiting time, training needs, and the likelihood of a successful hire. For longer assignments, include worker classification and shared employment responsibilities in your review of the agency agreement.
More hiring scenarios
Compare hiring costs for up to ten roles
The Role Portfolio tab compares up to ten roles side by side. The Buyout Schedule shows how conversion fees change with assignment hours, including fees that remain fixed until waiver. The assumptions tab contains the starting figures.
$29
One-time purchase. Instant download.
30-day refund. Reply to your receipt or email support@truestephr.com.
Compare this estimate with your records to help plan your next step.