Cost Per Hire Calculator

Calculate the full cost of filling a role using the SHRM and ANSI standard. Enter your external recruiting expenses and the hours spent by the recruiter and hiring manager. The Excel workbook assigns a dollar value to that time and calculates your cost per hire, the split between external and internal costs, and the total as a percent of first-year salary.

A working model with the structure in place

Start with external recruiting expenses: job ads, agency fees, background checks, and referral bonuses. Then enter the recruiter and hiring manager salaries and the hours each spent on the hire. The workbook calculates the value of that time using salary over 2,080 working hours, adds recruiting tools, and applies the SHRM and ANSI formula. You get the cost per hire, the external and internal cost split, and the total as a percent of first-year salary. The one-page Summary shows the cost per hire, the split, and the figure against the SHRM benchmark for budget discussions. The Benchmark tab includes the SHRM 2026 medians alongside the 2025 medians and averages. A worked example shows how the calculation works before you enter your own figures.

How staff time affects your cost per hire

Recruiting costs include direct expenses, such as job ads and agency fees, along with the time recruiters and hiring managers spend on each hire. That staff time is often overlooked, which is why the full cost usually runs higher than the invoices alone. The SHRM and ANSI standard calculates cost per hire by dividing total internal and external recruiting costs for a period by the number of hires in that period. The workbook values recruiter and manager time using each person's salary over 2,080 working hours, including time spent screening, interviewing, and closing. A result well below the benchmark may reflect an efficient process or costs that have not been included. The external and internal breakdown helps you understand the difference.

Built for

• Recruiting and HR leaders calculating cost per hire using the SHRM and ANSI standard, with actual expenses and staff hours.
• Finance and HR partners preparing recruiting budgets that include staff time, agency invoices, and job board expenses.
• Small business owners and hiring managers reviewing the cost of filling a role before approving a hiring requisition.

To calculate the yearly cost of vacant positions caused by slow hiring, see the Vacancy Cost Calculator. To compare using an outside agency with hiring through your own recruiters, explore the Agency vs Internal Recruiter ROI Calculator.

Before you buy

What format is it, and can I edit it?

You get one Excel workbook that also works in Google Sheets. The download is five files: the workbook, a Start Here, the one-page Quick Reference, the product license, and a short guide to using it in Google Sheets. Every input and formula is editable. Duplicate the file to calculate costs for another role or quarter using the same method, so you can compare results over time. Your download link is available immediately after checkout, with the same link emailed on your receipt.

What does the paid workbook do that a free calculator does not?

The workbook applies the full SHRM and ANSI formula, including recruiter and hiring manager time calculated from each salary over 2,080 working hours. It separates external recruiting expenses from internal staff time, making both sides of the calculation visible rather than combining them into one number. Set your reporting period once, duplicate the file for another role or quarter, and review the formulas behind every result. A quick browser estimate provides one figure. This workbook gives you the standard formula, the sources, and a reusable file for ongoing comparisons.

What does the cost include?

Two groups. External is job ads, agency or recruiter fees, background checks and assessments, and referral bonuses. Internal is the recruiter and hiring manager time, priced from salary over 2,080 working hours, plus your recruiting tools. The workbook adds both, divides by your number of hires, and shows which side carries more of the cost.

What is the refund policy?

Digital products are covered by a 30-day money-back guarantee. To request a refund, email support@truestephr.com or reply to your receipt within 30 days of purchase. Questions? Email support@truestephr.com.

These are planning estimates based on the costs and hours you enter. Keep recruiting expenses and hires within the same reporting period. Count offers that became starts rather than offers made, and use your actual salaries and hours in place of the example figures.

How the download works

Your files arrive as a single ZIP download, best opened on a computer. Save it, extract it (right-click and select Extract All on Windows, or double-click on a Mac), then open the Start Here file first. PDFs open in any reader, and editable files work in Microsoft Excel or free equivalents, including LibreOffice and Google Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.

Scope

This planning and analysis model produces estimates based entirely on the inputs and assumptions you enter. Use those estimates to support decisions, rather than as accounting, tax, or legal conclusions. Check the assumptions against your own data. Have qualified counsel review decisions involving pay, headcount, or separation against applicable law before acting. General information, not legal, tax, or financial advice.