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Remote jobsCost per hire calculator
Cost per hire is the one recruitment metric every budget conversation starts with. Enter a year's spend and hires and see where the money goes.
- The figures behind it · Formula
- spend ÷ hires
- Typical agency fee
- 15 to 25 % of salary
- Typical cost per hire
- £3,000 and up
What goes into cost per hire
External spend is easy to see; internal time is where most of it hides.
- External costs
- Job board fees, sponsored posts, agency placement fees, assessments and background checks.
- Internal costs
- The hours recruiters and hiring managers spend on screening, interviews and admin, multiplied by what an hour of their time costs.
- Onboarding
- Equipment, training and the first weeks of lower productivity. Many companies leave it out, which is why their cost per hire looks low.
Rule set 2026.1, last checked on October 12, 2026.
The result is an estimate based on the statutory rules. Your contract, collective agreement or tax code may change the figures. It is not tax or legal advice.
Frequently asked questions
What is a good cost per hire?
- It depends on the role: a few hundred pounds for high-volume hourly jobs, several thousand for specialists hired through agencies. Track it over time and per channel rather than against a single benchmark.
How do I reduce cost per hire?
- Fill more roles through direct channels (job boards, referrals, your own careers page) instead of agencies, shorten the time to hire and keep the candidates you already have in a pipeline.
Does cost per hire include the salary?
- No. It covers the cost of finding and starting the person, not paying them. Use the total employer cost calculator for the salary side.
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