Cost-per-Hire Calculator

Cost-per-hire is the number Finance actually asks about. Use the calculator below to get your CPH using the SHRM-standard formula, then see benchmarks by role level and the levers that move the number fastest.

Last updated September 8, 2026

Calculate your cost-per-hire

Enter at least one hire and non-negative costs.
Average cost per hire
$0
Total recruiting spend$0
Hires0
Benchmark range: $3,000–$5,000 for nonexecutive roles (varies by seniority, location, and channel mix). If your CPH is above benchmark, review sourcing mix and reduce manual steps.

How the formula works

Cost-per-hire follows the SHRM/ANSI-standard formula: total recruiting-related spend divided by the number of people hired in that period. It's meant to answer one question — how much did it cost, on average, to fill each seat.

Cost-per-Hire formula Cost per Hire = (Advertising + Recruiter Salary Allocation + Onboarding/Training + Tools) / Number of Hires

The strict SHRM/ANSI standard limits cost-per-hire to recruiting-specific spend and excludes onboarding, training, and the new hire's own compensation. This calculator includes an optional onboarding/training field so you can see a fuller total cost of hiring — set it to zero if you want a number directly comparable to published SHRM benchmarks.

Example: $8,000 in advertising, $15,000 in recruiter salary allocation, $4,000 in onboarding, and $2,000 in tools across 10 hires works out to a $2,900 cost per hire — under the $3,000–$5,000 benchmark range.

Cost-per-hire benchmarks by role level

Role levelTypical CPH range
High-volume / entry-level$500 – $2,500
Individual contributor / professional$3,000 – $6,000
Manager / director$6,000 – $15,000
Executive / VP and above$15,000 – $30,000+

Internal vs. external recruiting costs

Getting an accurate cost-per-hire depends on capturing both cost categories completely, since undercounting either one skews the metric.

How to lower your cost-per-hire

  1. Shift spend toward high-yield channels. Employee referrals and organic applicant flow typically cost far less per hire than paid agencies.
  2. Reduce agency reliance where possible. Reserve agency fees for roles that genuinely need external search reach.
  3. Automate screening and scheduling. Every hour of manual recruiter time saved lowers the internal cost side of the formula.
  4. Track cost by channel, not just in aggregate. Knowing which sources produce hires at the lowest cost lets you reallocate budget with evidence instead of guesswork.
  5. Benchmark by role level, not company-wide. Comparing an executive search cost to an entry-level average will make efficient hiring look inefficient.

Frequently asked questions

Cost-per-hire (CPH) measures the average total expense to fill one open position, combining internal costs like recruiter salaries and external costs like advertising and agency fees, divided by the number of hires in a period.

Using the SHRM/ANSI-standard formula: Cost per Hire = (Internal Recruiting Costs + External Recruiting Costs) / Number of Hires.

It varies by role level: roughly $3,000–$5,500 average for nonexecutive roles, $3,000–$6,000 for professional individual contributors, $6,000–$15,000 for manager/director roles, and $15,000–$30,000+ for executive hires.

The strict SHRM standard excludes onboarding and training. This calculator includes it as an optional field for a fuller total-cost view — set it to zero for a number comparable to published SHRM benchmarks.

Internal costs are expenses your organization incurs itself, like recruiter salary allocation and technology. External costs are payments to third parties, like job board fees, agency commissions, and background checks.

Shift spend toward referrals and organic sourcing, limit agency use to roles that need it, automate screening and scheduling to cut recruiter time, and track cost by channel to reallocate budget toward what works.

Executive and specialized roles need longer searches, more interview stages, and higher agency fees as a percentage of salary, which pushes CPH well above high-volume or entry-level roles filled through low-cost channels.

Related resources

Lower your CPH without lowering hire quality

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Benchmark ranges above are general industry guidance for directional planning, not a guarantee for any specific organization or role. For a number specific to your team, use your own cost and hire data in the calculator.