Placement fee calculator
Quote and track permanent placements with the full picture: the fee as a share of salary, the recruiter time and advertising behind it, and the margin that remains.
- The figures behind it · Typical fee
- 15 to 25 % of annual salary
- Typical search
- 25 to 40 recruiter hours
- Formula
- fee − time − advertising
How placement profit is calculated
The fee is easy; the search cost is where profitability hides.
- Placement fee
- The candidate's first-year annual salary times the agreed percentage. £30,000 at 20 % is a £6,000 fee, usually invoiced on the start date.
- Cost of the search
- Recruiter and sourcing hours times what an hour of their time costs, plus job advertising and tools. A 30-hour search at £25 an hour with £300 of advertising costs £1,050.
- Profit and margin
- Fee minus cost of the search; the margin is that profit as a share of the fee. Searches that fail still cost time, so track the hours per placement across all searches, not only the won ones.
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 typical recruitment fee?
- 15 to 20 % of the annual salary for most permanent roles, 25 to 30 % for senior, specialist or retained searches, with a rebate period of around three months if the hire leaves.
How many hours does a placement take?
- Sourcing, screening, interviews and offer management add up to 25 to 40 hours for a standard role; include the hours spent on candidates who were not placed.
Does the calculator include rebates?
- No. Reserve part of the profit for the rebate period, or reduce the fee percentage by your historical rebate rate.
What next?
Filling roles for clients? Post them on Jober and manage every applicant in one place.
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