Understanding your cost per hire is essential for managing talent acquisition budgets and measuring the efficiency of your recruitment strategies. This free calculator helps HR and talent professionals in the United States and the United Kingdom determine their true recruitment cost using industry-standard SHRM/ANSI methodology.
Whether you're evaluating internal recruitment efforts, agency fees, or job board expenses, this tool provides a clear, actionable metric to inform better HR decisions and improve cost control across your recruitment processes.
How the calculation works
The cost per hire is calculated by summing all direct and indirect recruitment expenses over a defined period and dividing that total by the number of hires during the same period. This approach follows SHRM (Society for Human Resource Management) and ANSI (American National Standards Institute) standards to ensure consistency and accuracy.
Direct costs include external expenses like job board fees, agency fees, travel, and advertising. Indirect costs cover internal expenses such as recruiter salaries, office supplies, and training materials. The formula is: (Total Direct Cost + Total Indirect Cost) ÷ Number of Hires = Cost Per Hire.
This calculator ensures your cost per hire reflects both internal and external investment, providing a comprehensive HR metric that aligns with international best practices.
How to use this calculator
- Enter the total direct costs (e.g., job board fees, agency costs, advertising).
- Enter the total indirect costs (e.g., internal salaries, office supplies, training).
- Input the number of hires in the reporting period.
- Click 'Calculate' to get your true cost per hire.
- Review the breakdown and export your results for reporting or analysis.