Free Cost Per Hire Calculator
Calculate average cost incurred to hire one employee including all internal and external costs.
Quick answer
Cost per hire = (internal recruiting costs + external recruiting costs) ÷ number of hires in the period. Internal costs include recruiter salaries and interview time; external costs include job portals, agency fees, background checks and referral bonuses. Example: ₹1,50,000 internal + ₹2,50,000 external for 8 hires = ₹50,000 per hire.
Last reviewed November 2026.
How to use the Cost Per Hire Calculator
Fill in these fields and the cost per hire calculator works out the rest instantly, in your browser:
- Internal Recruiting Costs (₹) — HR salaries, time spent, ATS costs
- External Recruiting Costs (₹) — Job boards, agency fees, ads, assessments
- Total Hires in Period
Worked example
With Internal Recruiting Costs: 200000; External Recruiting Costs: 300000; Total Hires in Period: 20:
| Internal Costs | ₹2,00,000 |
| External Costs | ₹3,00,000 |
| Total Recruiting Cost | ₹5,00,000 |
| Total Hires | 20 |
| Cost Per Hire | ₹25,000 |
| SHRM Benchmark (India) | ₹50,000 – ₹2,00,000 |
Frequently asked questions
What should be included in cost per hire?
Every cost spent to fill roles in the period: job portal subscriptions, agency fees, referral bonuses, assessment tools, background verification, travel, and the share of HR and interviewer time spent on hiring.
What is the difference between cost per hire and cost of a bad hire?
Cost per hire is what it takes to fill a role. The cost of a bad hire adds the salary paid, training wasted and the cost of hiring again when that person leaves early.
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