Cost per Hire Calculator

Cost per hire is your total recruiting costs (internal and external) divided by the number of people you hired in the same period. That's the ANSI/SHRM standard formula, and it's the one this calculator uses.
The US average sits at $5,475 for non-executive roles, according to SHRM's 2025 Benchmarking Report. Most teams guess low, because they count what they paid vendors and forget what they paid themselves.
Fill in what you spent below. The calculator does the rest.
Updated August 2026 with current SHRM benchmarks and per-channel cost data.

Cost per hire calculator

How do you compare?

According to SHRM and Glassdoor, small and medium-sized businesses in the U.S. spend between $4,000 and $6,000 per hire, depending on the role, company size, and market conditions.

$0$3k$5k$8k$10k+

Excellent (under $3,000)
Your hiring process is very cost-effective. You're likely leveraging strong referrals, automation, or a well-optimized ATS.
Good ($3,000–$5,000)
A fair cost per hire for small and medium-sized businesses. There's still room to improve by optimizing sourcing channels and reducing time-to-fill.
Above Average ($5,000–$8,000)
Costs are creeping up. Consider reviewing your sourcing mix and interview process for inefficiencies.
Needs Improvement ($8,000+)
Hiring costs are high. Review your job ads, agency fees, and identify bottlenecks slowing down the process.

FAQs

What is the cost of hiring?

The total cost of filling one open position, including both internal and external recruiting costs, divided by the number of hires in a given time period.

How do I figure it out?

Add up the costs of hiring people from inside the company (like recruiters' salaries, time spent by the hiring team, the ATS, and onboarding) and from outside the company (like job ads, agency fees, and background checks). Then split that total by the number of people you hired.

How much should you pay to hire someone?

For small and medium-sized businesses, paying between $3,000 and $5,000 for each hire is a good amount. If you keep going over $8,000, you should look over your tools and process.

How can I make my hiring costs lower?

To cut down on manual work, use automation and an ATS. Make your job descriptions better to get better matches. Keep track of which job boards bring in the best candidates. Use referrals and internal mobility more.

Does the number change based on the role?

Yes. It usually costs more to fill technical and senior roles because it takes longer to find candidates and costs more to advertise. Entry-level and seasonal positions are less expensive.

How often do I need to check it?

Every three or six months is best—enough to see trends without having to manage every hire.