Time-to-Fill Cost Calculator

How vacancy cost is calculated

Start by converting calendar days to workdays: calendar days to fill × workdays per year ÷ 365. With 260 workdays per year, a 44-day search represents about 31 working days. Multiply those workdays by the estimated daily value of the role. Subtract pay and benefits saved while the position is open, then add any additional coverage costs. You can estimate daily role value using company revenue per employee or a multiple of salary. For example, a company with $5,000,000 in revenue, 50 employees, a role multiplier of 2, a $60,000 salary, and 30% benefits has an estimated daily role value of about $769. Across 31.3 workdays, the estimated lost value is about $24,110. After approximately $9,403 in saved pay and benefits, the net vacancy cost is about $14,707, or $334 per additional calendar day.

Choose a role value that fits

Gallup estimates that replacing an employee can cost one-half to two times annual salary. That measures replacement cost, which is different from the vacancy cost calculated here. Choose a multiplier that reflects the value this position creates. A support role may warrant a lower multiplier. A senior role or one directly responsible for revenue may warrant a higher one. Adjust the multiplier based on what you know about the role's contribution.

Other costs worth considering

The estimate includes lost role value, payroll savings, and additional coverage expenses. Project deadlines, team workload, and customer commitments also matter when deciding how quickly to fill the position.