Free tool for in-house and agency recruiters
Cost per hire calculator (SHRM/ANSI method)
Cost per hire = (external costs + internal costs) ÷ hires. In the example, $4,000 of job ads, $15,000 of agency fees and $2,000 of other outside costs make $21,000 external; $24,000 of recruiting staff cost and $3,000 of other internal costs make $27,000 internal. $48,000 for 8 hires is $6,000 per hire, $2,625 external and $3,375 internal.
Last updated 2026-11-12.
- Cost per hire
- External costs
- Internal costs
- Total recruiting cost
- External per hire
- Internal per hire
- External share of cost
Check the inputs: costs not negative and not all 0, hires a whole number of at least 1.
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Example scenarios
Three sets of example inputs worked through the same formulas as the calculator above. They are illustrations, not averages or statistics.
| Scenario | Inputs | Cost per hire | External costs | Internal costs | External share |
|---|---|---|---|---|---|
| Low | 4 hires, $12,000 total recruiting cost | $3,000 | $2,000 | $10,000 | 16.7% |
| Typical | 8 hires, $48,000 total recruiting cost | $6,000 | $21,000 | $27,000 | 43.8% |
| High | 20 hires, $160,000 total recruiting cost | $8,000 | $78,000 | $82,000 | 48.8% |
Method: External = advertising + agency fees + other outside costs; internal = recruiting staff cost + other internal costs; cost per hire = (external + internal) ÷ hires in the same period. Figures checked against the same formulas on 2026-11-12.
How the calculator works
The SHRM/ANSI cost-per-hire standard (ANSI/SHRM 06001.2012) adds the external and internal costs of recruiting in a period and divides by the hires made in that period. External costs are paid to outside vendors or people: job ads and boards, agency and search fees, background checks, candidate travel, recruiting events. Internal costs belong to your own recruiting function: pay and benefits of recruiting staff, referral bonuses, and tools and overhead.
The new hires' own pay and benefits are not part of cost per hire. Enter each cost for the same period as the hires; the calculator shows the external, internal and total cost, cost per hire, and how much of the cost is external.
Worked example
In one quarter a company spends $4,000 on job ads, $15,000 on an agency fee and $2,000 on background checks and candidate travel, $21,000 external. Its recruiter's pay and benefits for the quarter are $24,000 and referral bonuses and the applicant tracking system add $3,000, $27,000 internal.
The total is $48,000. With 8 hires in the quarter, cost per hire is $48,000 ÷ 8 = $6,000: $2,625 external and $3,375 internal. External costs are 43.8% of the total.
Caveats
If a recruiter also does other HR work, count only the share of their time spent recruiting. Costs and hires must cover the same period; a big agency fee paid this month for a hire who starts next month can make one month look expensive. Compare cost per hire between your own periods or roles rather than with published averages, which count costs in different ways.
This is an estimate, not accounting or legal advice; check the cost split with whoever keeps your books.
What this tool does not do
It works out one period and forgets everything when you close the page. It does not track spend, rate candidates or give employment advice. For the recruiting work itself, the Desk & Intake prompt kit linked below keeps intake notes, outreach drafts and a light pipeline in Notion; it does not track recruiting costs.
Questions
What is the cost per hire formula?
External plus internal recruiting costs, divided by hires in the same period. $48,000 for 8 hires is $6,000.
Is the new hire's salary part of cost per hire?
No. The SHRM/ANSI standard counts the cost of recruiting, not the pay or benefits of the person hired.
Does this page store my recruiting costs?
No. The math runs in your browser; nothing is sent or saved.
Made by Bardach Technologies. We also make Desk & Intake, a separate recruiter prompt kit for Notion: 41 prompts from intake to offer and a light candidate pipeline with 5 databases (USD 31.99, one-time purchase on Gumroad). The prompts write drafts you edit; they never rank people, and the kit does not track recruiting costs. This calculator is free and needs no sign-up; nothing is charged on this page. Get Desk & Intake on Gumroad (USD 31.99)