Free Cost-Per-Hire (CPH) Calculator

Cost per Hire Calculator

Calculate the true cost of hiring new employees

💼 Direct Costs

⏰ Time-Based Costs

📊 Results

Cost per Hire
$0.00
Total Hiring Cost
$0.00
Cost Breakdown
Job Postings: $0.00
Recruiter Time: $0.00
Interviews: $0.00
Assessments: $0.00
Background: $0.00
Onboarding: $0.00

📍 Why Use the Cost-per-Hire Calculator

Knowing your Cost per Hire (CPH) helps you budget accurately, compare sourcing channels, and prove the efficiency of your recruiting process. Use this calculator to bring all direct and time-based expenses into one clear number you can track month over month.

📝 TL;DR – Quick Start Checklist

  1. Enter direct costs: job postings, interview costs, assessments, background checks, onboarding.
  2. Add recruiter time: annual salary and hours spent recruiting for these hires.
  3. Set “Number of Hires”. If costs cover a campaign that produced multiple hires, include them all.
  4. Review outputs: Total Hiring Cost and Cost per Hire (Total ÷ Hires) with category breakdown.
  5. Scenario test: Change hours, salary, or providers to see how each driver moves CPH.

💡 Tip: Use the same inputs (and accounting rules) each month or quarter so trends stay comparable.

⚙️ How the Calculator Works

The tool combines direct and time-based costs, then divides by the number of hires.

  1. Direct Costs — Job postings + interview costs (e.g., candidate travel, assessments, panel stipends) + background checks + onboarding (equipment, training materials, welcome kits).
  2. Time-Based Costs — The cost of recruiter time spent on these hires:
    • Recruiter hourly rate = Recruiter annual salary ÷ 2080 hours (standard U.S. work year)
    • Recruiter time cost = Hourly rate × Time spent recruiting (hours)

The calculator then outputs:

  • Total Hiring Cost = Direct costs + Recruiter time cost
  • Cost per Hire = Total Hiring Cost ÷ Number of Hires
Behind the math (short)

Hourly Rate = Recruiter Annual Salary / 2080
Recruiter Time Cost = Hourly Rate × Recruiting Hours
Total Hiring Cost = Job Postings + Interviews + Assessments + Background + Onboarding + Recruiter Time Cost
Cost per Hire = Total Hiring Cost / Number of Hires

🎯 Make the Most of It

Allocate shared costs fairly. If a job board campaign produced 4 hires, divide that spend across all 4.

Track time consistently. Log sourcing, screening, scheduling, offers, and admin work—small chunks add up.

Compare channels. Run CPH by role and source (agency vs. job board vs. referral) to shift budget where it wins.

🧰 Example (filled fields)

Job postings $500, interviews $200, assessments $150, background $100, onboarding $300, recruiter salary $65,000, recruiting hours 40, hires 1.

  • Hourly rate = 65,000 ÷ 2,080 ≈ $31.25
  • Recruiter time cost = 31.25 × 40 = $1,250
  • Total hiring cost = 500 + 200 + 150 + 100 + 300 + 1,250 = $2,500
  • Cost per hire = 2,500 ÷ 1 = $2,500

❓ Frequently Asked Questions

If you can measure it, yes—include the estimated hours × hourly rate for hiring managers or panels. If not, leave it out but be consistent across periods so trends remain comparable.

Enter the total campaign cost and set “Number of Hires” to the hires produced. The calculator will divide automatically to give an accurate per-hire number.

Typically no—benefits are part of ongoing employment cost, not acquisition cost. Keep CPH focused on hiring expenses.

It’s a standard U.S. work-year assumption (40 hours × 52 weeks). If your company uses another figure, adjust the hourly rate accordingly and keep it consistent.

Note: This tool provides planning estimates and should complement your company’s finance policies.