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Recruitment Cost Calculator

Calculate the true cost of hiring including job ads, recruiter fees, interview time, and onboarding. Compare cost per hire against industry benchmarks.

Last updated: March 2026

A recruitment cost calculator estimates the total cost of filling a position including job boards, recruiter time, tools, and agency fees. The average cost per hire in tech is $4,000 to $15,000. Agency fees add 15 to 25% of the annual salary. Use this free tool to budget for hiring.

Annual Salary ($)

Agency Fee %

Internal Hiring Cost per Role ($)

Time to Hire with Agency (days)

Time to Hire Direct (days)

Agency Total Cost

$12,600

Direct Hire Total Cost

$3,986

Difference

$8,614

Days Saved with Agency

30 days

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How You Compare

Your agency recruitment cost is in the bottom 56% of mid-level hires in tech.

Industry typical: $10,000-25,000

Source: LinkedIn Talent Solutions 2025

💡 What This Means

📊 Agency recruitment cost: $12,600 vs $3,986.301 direct hire. The difference is $8,613.699.
⚡ Agencies save you 30 days in time-to-hire. For revenue-generating roles, this speed advantage may be worth the premium.
💡 Consider employee referral programs — they typically cost 50-70% less than agencies and result in hires who stay 45% longer.

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What is Recruitment Cost?

Recruitment cost (cost per hire) is the total expense of filling a vacancy, including agency fees, job board advertising, internal recruiter time, interview panel time, and onboarding. Understanding this cost helps optimise recruitment channels and justify investments in employer branding. Plan your headcount budget with the Hiring Plan Calculator and measure the cost of losing people with the Employee Turnover Calculator.

The Formula

Cost per Hire = (Agency Fees + Job Board Costs + Internal Recruiter Time + Interview Panel Time + Onboarding) ÷ Number of Hires

Worked Example

3 hires in one quarter: 1 via agency (£15,000 fee), 2 via job boards (£2,000 total). 40 hours internal recruiter time at £30/hour. £4,500 total onboarding across all 3.

Agency fees = £15,000
Job boards = £2,000
Internal time = 40 × £30 = £1,200
Onboarding = £4,500
Total recruitment cost = £22,700
Cost per hire = £22,700 ÷ 3 = £7,567

📌 Average cost per hire: £7,567. The agency hire cost £15,000+ while the job board hires averaged £3,850 each — highlighting the cost premium of agency recruitment.

Why This Matters

Channel optimisation

Tracking cost per hire by channel reveals where to invest. If LinkedIn direct sourcing costs £2,000 per hire vs £12,000 via agencies, shifting effort to direct sourcing saves £10,000 per hire — meaningful when hiring 10+ people per year.

Budget planning

Knowing your average cost per hire enables accurate budgeting. A plan to hire 8 people at £7,500 each requires £60,000 in recruitment budget on top of salaries — a number that surprises many finance teams.

Common Mistakes

❌ Ignoring interview panel costs

A 5-person panel spending 1 hour interviewing 6 candidates costs 30 person-hours. At £40/hour average, that's £1,200 in interview time alone — per hire. Structured interviews with fewer rounds reduce this without sacrificing quality.

❌ Not measuring quality of hire

A £2,000 hire who leaves after 3 months costs more than a £10,000 agency hire who stays 3 years. Track 12-month retention and performance by recruitment channel to understand true value, not just upfront cost.