Free tool for hiring managers and agency recruiters
Recruitment agency fee and refund calculator
Fee = first-year salary × fee %. Pro rata refund = fee × (guarantee days − days worked) ÷ guarantee days. In the example, a $80,000 salary at 20% is a $16,000 fee. The hire leaves after 40 days of a 90-day guarantee, so 50 of 90 days are unused: the refund is 55.6% of the fee, $8,888.89, and the agency keeps $7,111.11. Under a tiered rule of 100%, 50% and 25% for each third of the guarantee, day 40 falls in the second third and the refund is $8,000.
Last updated 2026-11-12.
- Refund due
- Placement fee
- Refund as % of the fee
- Agency keeps
- Guarantee days left at exit
Check the inputs: salary and guarantee above 0, fee above 0% and at most 100%, days not negative, tier refunds between 0% and 100%.
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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 | Fee | Refund % | Refund | Agency keeps |
|---|---|---|---|---|---|
| Low | $50,000 salary at 15%, left after 20 of 60 guarantee days, pro rata | $7,500.00 | 66.7% | $5,000.00 | $2,500.00 |
| Typical | $80,000 salary at 20%, left after 40 of 90 guarantee days, pro rata | $16,000.00 | 55.6% | $8,888.89 | $7,111.11 |
| High | $150,000 salary at 25%, left after 150 of 180 guarantee days, tiered 100/50/25% | $37,500.00 | 25.0% | $9,375.00 | $28,125.00 |
Method: Fee = first-year salary × fee %. If the hire leaves inside the guarantee period: pro rata refund % = (guarantee days − days worked) ÷ guarantee days; tiered refund % = the % set for the third of the guarantee period the exit falls in. Refund = fee × refund %; the agency keeps fee − refund. Figures checked against the same formulas on 2026-11-12.
How the calculator works
A contingency placement fee is usually a percentage of the hire's first-year salary, paid once the hire starts. The calculator multiplies the salary by the fee percentage. If your contract bases the fee on total pay, enter base salary plus the bonus or commission it counts.
Most agreements add a guarantee: if the hire leaves within a set number of days, part of the fee comes back. Pro rata means the refund falls day by day in proportion to the unused guarantee. Tiered means fixed refund steps; this calculator splits the guarantee into three equal parts and applies the percentage you enter for the part in which the hire left. After the guarantee ends there is no refund.
Worked example
A hire on $80,000 a year is placed at a 20% fee: $80,000 × 0.20 = $16,000. The contract has a 90-day guarantee and the hire leaves after 40 days.
Pro rata, 50 of 90 days are unused, so the refund is 50 ÷ 90 = 55.6% of the fee: $8,888.89 back and $7,111.11 kept by the agency. With tiers of 100%, 50% and 25% for days 0 to 30, 30 to 60 and 60 to 90, day 40 is in the second tier and the refund is 50%, $8,000.
Check your contract
Fee terms differ from contract to contract. Check what the fee is based on (base salary or total compensation), whether the guarantee counts calendar days or working days from the start date, and whether the refund is cash, a credit or a free replacement search instead of money back.
Guarantees often have conditions: the invoice paid on time, and no refund if the role is made redundant or the hire is dismissed for reasons the agency could not know. The result is an estimate, not advice; the signed terms decide what is owed.
What this tool does not do
It handles one placement and one exit date. It does not add sales tax or VAT, model retained or exclusive search fees paid in stages, or tell you what fee percentage is normal. It keeps nothing after you close the page.
Questions
Is the fee charged on base salary or total pay?
It depends on the contract. Some agencies use base salary only, others include guaranteed bonus or commission. Enter the figure your contract names.
What if our tiers are not equal thirds?
Work out which tier the exit date falls in under your contract and enter that percentage in all three tier fields; the refund then uses that one rate.
Does this page store my numbers?
No. The math runs in your browser; nothing is sent or saved.
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