Cost Per Hire Calculator
Calculate cost per hire from total recruiting expenses. Compare to industry average of $4,700.
Cost Per Hire
$7,000.00
Total Recruiting Cost
$35,000.00
vs Industry Avg ($4,700)
+$2,300.00
Cost Breakdown by Category
| Recruiting Tools & Software (14%) | $5,000.00 |
| Advertising & Job Boards (9%) | $3,000.00 |
| Agency Fees (29%) | $10,000.00 |
| Employee Referral Bonuses (6%) | $2,000.00 |
| Recruiter Salaries (allocated) (43%) | $15,000.00 |
| Total Recruiting Costs | $35,000.00 |
| Cost Per Hire (5 hires) | $7,000.00 |
Industry Comparison
Your Cost Per Hire
$7,000.00
Industry Average
$4,700.00
Difference
+48.9%
Use the Cost Per Hire Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Our Cost Per Hire Calculator helps you accurately determine how much your organization spends to recruit and onboard a new employee. Understanding your cost per hire is crucial for optimizing recruitment budgets, identifying inefficiencies, and improving your hiring strategy. In 2026, the industry average cost per hire is projected to be around $4,700, making it essential to benchmark your performance.
The methodology for calculating cost per hire involves dividing your total recruiting expenses by the total number of hires made within a specific period. This includes all internal and external recruiting costs, such as advertising, recruiter salaries, background checks, and onboarding materials. The formula is: CPH = (Internal Recruiting Costs + External Recruiting Costs + Onboarding Costs) / Total Hires.
When using this calculator, ensure you include all relevant costs; frequently, organizations overlook indirect expenses like hiring manager time or software subscriptions. A common mistake is to only count external agency fees, leading to an artificially low and inaccurate cost per hire. Remember that a low cost per hire isn't always ideal if it compromises the quality of your hires or increases turnover rates.
Example: Calculating Cost Per Hire for a Tech Startup in Q1 2026
- 1 Step 1: Input your total recruiting expenses for Q1 2026. This includes $15,000 for job board advertisements, $20,000 for a recruitment agency, $10,000 for recruiter salaries, $2,000 for background checks, and $3,000 for new employee onboarding kits. Your total hires for Q1 were 10.
- 2 Step 2: Calculate the total recruiting expenses: $15,000 + $20,000 + $10,000 + $2,000 + $3,000 = $50,000. Now, divide this by the total number of hires: $50,000 / 10 hires.
- 3 Step 3: Your calculated Cost Per Hire is $5,000.
- 4 Step 4: Compare your calculated CPH of $5,000 to the 2026 industry average of $4,700. In this example, the startup's cost per hire is slightly above the industry average, indicating potential areas for efficiency improvements in their recruitment process.
Source: SBA — Business Guide · Last updated: April 2026
Frequently Asked Questions
What is the average cost per hire in 2026?
How do you calculate cost per hire?
What is included in external recruiting costs?
You might also need
Self-Employment Tax Calculator 2026 — SE Tax & Quarterly Payments
Calculate SE tax, quarterly estimated payments, and total tax burden for freelancers and 1099 contractors. Free, instant results based on 2026 IRS rates.
LLC vs S-Corp Tax Comparison Calculator
Compare tax liability as an LLC vs S-Corp. See how much you can save on self-employment tax with an S-Corp election.
W-2 vs 1099 Comparison Calculator
Compare take-home pay as a W-2 employee vs 1099 contractor. Find the equivalent 1099 rate to match your W-2 salary.