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Cost Per Hire Calculator

Include recruiter salaries, employee referral bonuses, and internal interview time.

Include job board fees, recruitment agencies, background checks, and travel.

Total number of employees hired during the period.

Your Average Cost Per Hire:

function calculateCPH() { var internal = parseFloat(document.getElementById('internalCosts').value); var external = parseFloat(document.getElementById('externalCosts').value); var hires = parseFloat(document.getElementById('totalHires').value); var resultContainer = document.getElementById('cphResultContainer'); var valueDisplay = document.getElementById('cphValue'); var summaryDisplay = document.getElementById('cphSummary'); if (isNaN(internal) || isNaN(external) || isNaN(hires) || hires <= 0) { alert("Please enter valid numbers. Total hires must be greater than zero."); return; } var totalCost = internal + external; var costPerHire = totalCost / hires; resultContainer.style.display = 'block'; resultContainer.style.backgroundColor = '#e7f3ff'; valueDisplay.innerHTML = "$" + costPerHire.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); summaryDisplay.innerHTML = "Total Recruitment Investment: $" + totalCost.toLocaleString(); }

What is Cost Per Hire (CPH)?

Cost Per Hire is one of the most critical metrics for HR professionals and recruitment managers. It measures the average amount of money a company spends to bring in a new employee. Understanding this figure allows businesses to allocate recruitment budgets more effectively and evaluate the efficiency of their hiring processes.

The Cost Per Hire Formula

CPH = (Total Internal Recruiting Costs + Total External Recruiting Costs) / Total Number of Hires

Internal vs. External Costs

To get an accurate result from the calculator, it is vital to categorize your expenses correctly:

  • Internal Costs: These include the salaries of your internal recruiting team, the value of time spent by hiring managers in interviews, employee referral bonuses, and any infrastructure or software (ATS) costs dedicated to talent acquisition.
  • External Costs: These are expenses paid to third parties, such as agency fees, job board postings (LinkedIn, Indeed), recruitment marketing campaigns, career fair attendance, and candidate background checks.

Realistic Example

Suppose a mid-sized tech company hires 20 people over the course of a year. Their expenses were as follows:

  • Internal (Recruiter salary + referral bonuses): $60,000
  • External (Job ads + agency fees): $40,000
  • Total Spend: $100,000

Calculation: $100,000 / 20 hires = $5,000 Cost Per Hire.

Why Tracking This Metric Matters

By monitoring your CPH, you can identify which hiring channels provide the best return on investment. If your external costs are high but you are hiring few people, you might consider shifting focus toward an internal referral program or optimizing your employer branding to attract organic applicants.

Pro Tip: Don't just aim for the lowest cost. A low CPH is irrelevant if the quality of hire is poor, leading to high turnover. Balance cost efficiency with candidate quality.

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