Cost Per Hire Calculator

This Cost Per Hire Calculator helps you to find out a recruiting metric that calculates the costs of acquiring new personnel. It's an excellent way to see if your hiring process is optimised for your sector and role. To get the needed value of cost per hire of an employee, simply input the relevant values such as (Advertising Costs, Employee Referral Costs, Agency Fees, Relocation Costs, etc.).

Advertising Costs, AD:
Employee Referral Costs, ER:
Agency Fees, AF:
Relocation Costs, Relo:
Travel Costs, T:
Recruiters Time, RC:
Administrative Costs (%):

Cost Per Hire Calculator: It is helpful for the companies when recruiting new staff members. Knowing the cost per hire allows you to make more strategic and cost-cutting decisions related to hiring. Here are a few methods for calculating Cost Per Hire. The Employment Management Association (EMA) created the finest of these, as did the Cost Per Hire methodology used by this calculator. You can also get the details like cost per hire definition, formula, metrics, and steps to calculate it.

What is Cost Per Hire?

The Cost per Hire is a method of comparing employment methods and related costs and, usually, comparing the results to determine the most cost-effective means of hiring new faculty. Advertising mediums, physical obstacles to employment (travel, relocation, etc.), and related time implications are normally included in the calculation.

Cost Per Hire Formula in India

Formula to calculate cost per hire in India for an organization

Cost per hire = (Recruitment expenses for that duration) / (No. of recruitments)

In addition to consultant’s fees, recruitment expenses include the following:

- Job portal fees

- Salaries for recruitment staff

- Telephone bills

- Internet

- Reimbursement of travel expenses for participants in the interview

- Relocation charges

- Advertisement fees

- Referral bonuses

Cost Per Hire Metrics

The cost per hire is an important metric to track, which helps you optimize your recruiting process.

  • Setting a budget for recruitment and HR- When you track your 'cost per hire' data, you are able to understand what financial resources are needed to hire in the next period, as well as forecasting costs for the year and determine what recruitment costs are contributing to the bottom line of the company.
  • Managing finances- Some hard-to-fill roles will have a higher cost per hire than others. On the other hand, you should make sure that you are getting value for your money regardless of the cost per hire.
  • Recruiters' performance - The cost per hire metric also indicates how well your recruiters are managing resources.

How to Compute Cost Per Hire to Optimize Recruiting?

It is important to gather all the data needed to calculate the cost per hire. You should also determine the period for which you are calculating. The following steps are needed to be followed to calculate the cost per hire for optimized recruiting.

  1. Compilation of data- First, you will need your expenses to report for a specific period. Request this from the finance department, and try to isolate the costs for the recruitment department.
  2. Organize all recruiting costs in one column of a spreadsheet.
  3. Use the formula to calculate the cost per hire.

Cost Per Hire Calculation using formula Example


For a consultancy firm, calculate the cost per hire if the consultant’s fees are 20,000$ & recruitment expenses are 1500$ while no. of recruitments are 6.


Here, consultancy firm’s fees are 20,000$ & recruitment expenses are 1500$. So,

Total Recruitment expenses = 20000 + 1500 = 21500 $

Now, no. of recruitments are 6. So, now we calculate cost per hire

Cost per hire = (Recruitment expenses for that duration) / (No. of recruitments)

 = 21500 / 6 = 3550 $

Begin using more calculators for your convenience, and go to Arithmetic Calculators to answer complicated concepts and acquire data and equations for a range of ideas.

Frequently Asked Questions on Free Cost-Per-Hire Calculator

1. What is the cost per hire?

The Cost Per Hire is a way of contrasting employment methods and related costs. It is one of the most effective methods of hiring new faculty. Cost per hire calculations is useful for staff recruiting.

2. What is included in hiring costs?

In hiring costs several individual costs are included, in-house recruiters' salaries, employee referral bonuses, travel expenses, advertising costs, sign-on bonuses and third-party recruiter fees. In a few of the cases, employee relocation costs are added as well.

3. How do you calculate the cost to the company?

Cost to the company can be calculated by the addition of salary as well as supplementary benefits that an employee receives like EPF, house allowance, travel expenses etc.

The formula for CTC allowance is,

CTC = Gross Salary + Benefits.

4. How is the quality of hire calculated?

The quality of hire can be calculated using the formula:

Quality of hire=(Average quality of hire score for all new hires + Retention) / 2.