Cost Per Hire & Turnover Calculator
See what hiring and turnover really cost. Enter your recruiting spend and time, then your turnover rate and headcount to get cost per hire and the annual cost of losing employees.
Cost components
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Check it outTurnover is the hidden bill
Cost per hire captures advertising, agency fees, recruiter and interviewer time, screening, and signing bonuses. But the bigger number is turnover: replacing an employee is often estimated at half their salary or more once you add recruiting and lost productivity. Multiply by how many people you lose a year and the case for retention becomes obvious.
How it’s calculated
Cost per hire = total recruiting spend ÷ hires. Annual turnover cost = (headcount × turnover %) × (≈ half of salary + cost per hire).
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Worked example
Five hires costing $14,300 total is a $2,860 cost per hire; 15% turnover on 50 staff costs roughly $246k a year.
Common mistakes
- Counting only ad spend and ignoring staff time.
- Overlooking lost productivity in turnover cost.
Where it is used
- Budgeting recruiting and reporting cost per hire.
- Building the business case for retention.
Frequently asked questions
How is cost to replace estimated?
A common rule of thumb is about 50% of salary plus your cost per hire. Senior or specialized roles can cost far more.
What's a good cost per hire?
It varies widely by role and industry. Track it over time and against benchmarks for your sector rather than a universal target.
How can I cut turnover cost?
Improving retention even a few points compounds: fewer replacements, less lost productivity, and lower recruiting spend.
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