Cost Per Hire (CPH) Calculator

Stop overspending on recruitment. Calculate exactly how much it costs your company to hire a single employee based on internal and external expenses.

External Expenses ($)

Internal Expenses ($)

Recruitment Metrics

Average Cost Per Hire
$3,320

This is exactly how much you spend every time you bring a new employee into the company.

Total Spend
$33,200
External Ratio
54.2%

Expense Breakdown

Total External Costs:$18,000
Total Internal Costs:$15,200

What is Cost Per Hire (CPH)?

Cost Per Hire (CPH) is one of the most critical HR metrics. It measures the total amount of money a company spends to recruit and hire a new employee. According to SHRM, the average cost per hire in the US is around $4,700, but for executives or specialized tech roles, it can easily exceed $20,000.

The Cost Per Hire Formula

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

Internal vs External Costs

  • External Costs: The hard cash you pay to outside vendors. This includes job board fees (LinkedIn, Indeed), third-party recruiting agency commissions, background checks, drug testing, and travel expenses for candidates.
  • Internal Costs: The systemic costs within your company. This includes the salaries of your internal HR/Recruiting team, referral bonuses paid to current employees, and the cost of Applicant Tracking Software (ATS).

How to Lower Your Cost Per Hire

If your CPH is too high, you are relying too heavily on expensive third-party recruiting agencies. The best way to lower CPH is to build a strong employer brand so candidates apply directly to your website, and to implement a strong employee referral program. Paying a current employee a $1,000 referral bonus is vastly cheaper than paying a recruiter a $15,000 commission.

Frequently Asked Questions

What is the Cost Per Hire?

The Cost Per Hire is a free online tool designed to help you calculate average cost per hire (cph) to optimize your recruitment budget.

How much does the Cost Per Hire cost?

Our Cost Per Hire is 100% free to use. We do not require any signups, subscriptions, or credit cards.

Is my data safe when using this tool?

Yes. All calculations are performed locally in your web browser. We do not store or save your financial data or inputs on our servers.