How to Calculate Cost per Hire?
The Cost Per Hire Calculator helps you estimate the total expense of bringing a new employee onboard by combining out-of-pocket costs and employee time costs. Here’s how it works:
Accessing the Calculator
Go to HR Tools from the left navigation menu. Under Calculators, select Cost Per Hire from the dropdown and click Go to open the calculator.
Enter Out-of-Pocket Costs
Add all direct expenses related to hiring, such as:
- Job postings
- Third-party recruiter fees or internal referral bonuses
- Assessment tests
- Background checks
- New hire materials and supplies
Enter Employee Time Costs
Include the time investment from your team:
- Average employee hourly wage
- Hours spent reviewing applications
- Hours spent conducting phone screenings
- Hours spent interviewing applicants
- Hours spent checking references
- Hours spent administering onboarding
Generate Results
Click Calculate to view:
- Out-of-pocket subtotal
- Employee time subtotal
- Total cost per hire
✅ Tip: Use accurate wage and time estimates for the most reliable results.