Cost Per Hire Calculator
Reviewed by Hamza Gujjar, Algorithm Architect & Software Developer
Last updated: July 27, 2026Cost Per Hire Calculator
How much does it actually cost your organization to make one hire? This standard recruiting efficiency metric divides total recruiting spend by the number of successful hires.
Cost Per Hire = Total Recruiting Costs / Number of Hires
Example
$45,000 in total recruiting costs, 10 hires made:
Cost Per Hire = 45,000 / 10 = $4,500
What Should Count as "Recruiting Costs"
A comprehensive cost per hire figure should include job board postings, recruitment agency or search firm fees, background check and assessment fees, internal recruiter and hiring manager time (valued at their loaded hourly cost), and any signing bonuses or relocation assistance offered - omitting these indirect costs meaningfully understates the true cost per hire.
Benchmarks Vary Enormously
Industry benchmark figures range from a few hundred dollars for entry-level positions filled through internal referrals up to tens of thousands of dollars for executive searches involving external recruiting firms - comparing cost per hire meaningfully requires segmenting by role level and recruiting channel rather than looking at one blended organization-wide average.