Cost Per Hire Calculator


Hiring new employees is a significant investment for any organization. It’s essential to understand the cost associated with the recruitment process to make informed decisions about hiring budgets and strategies. The Cost Per Hire Calculator allows businesses to determine the average cost incurred to bring in new talent.


The cost per hire is calculated by dividing the total recruitment cost by the number of new hires:

Cost Per Hire = Total Recruitment Cost / Number of New Hires

How to Use:

  1. Input the total recruitment cost in dollars.
  2. Specify the number of new hires made.
  3. Click the “Calculate” button to determine the cost per hire.


Let’s say a company spends $10,000 on recruitment efforts and hires 5 new employees during a specific period.

Using the Cost Per Hire Calculator:

  • Total Recruitment Cost: $10,000.00
  • Number of New Hires: 5

After clicking “Calculate,” you will get the cost per hire:

  • Cost Per Hire: $2,000.00


  1. What is the cost per hire, and why is it important for businesses?
    • The cost per hire represents the average expense incurred to recruit and onboard new employees, helping organizations manage their hiring budgets effectively.
  2. Is this calculator suitable for all types of businesses and industries?
    • Yes, it can be used by businesses in various industries to calculate their cost per hire.
  3. Should I include only direct recruitment expenses, or are indirect costs also considered?
    • Include both direct and indirect recruitment costs to get a comprehensive view of the expenses.
  4. What are some examples of direct recruitment costs?
    • Direct costs include expenses like job advertising, recruiter fees, background checks, and interview expenses.
  5. Can indirect costs include employee training and onboarding expenses?
    • Yes, indirect costs can encompass employee training and onboarding costs if they are related to the hiring process.
  6. Should I consider the salary and benefits of the new hires in this calculation?
    • No, the cost per hire calculation focuses on the expenses associated with recruiting and onboarding, not the new hires’ ongoing compensation.
  7. Is it advisable to calculate the cost per hire for every new employee or as an average for a specific period?
    • Calculating both can provide valuable insights. Consider calculating an average for broader budget planning and individual costs for specific analysis.
  8. What is considered a reasonable cost per hire benchmark?
    • Benchmark figures can vary by industry and location. Research industry standards and compare your costs to similar organizations for context.
  9. How can organizations reduce their cost per hire?
    • Strategies include optimizing recruitment processes, using cost-effective hiring channels, and reducing time-to-hire.
  10. Does a lower cost per hire always indicate better recruitment efficiency?
    • Not necessarily. While cost reduction is essential, it should not compromise the quality of hires. Balance efficiency and effectiveness.


The Cost Per Hire Calculator provides valuable insights for businesses looking to manage their recruitment expenses more effectively. Understanding the cost associated with bringing in new talent allows organizations to make data-driven decisions about their hiring strategies and budgets. While this calculator offers a useful estimate, organizations should consider their specific recruitment processes and goals for precise cost analysis. Efficient hiring practices help businesses attract top talent while optimizing their financial resources.

Leave a Comment