True hiring cost.

Hiring cost calculator quantifies true cost of new employee. 20% recruiter fee on 50k salary = 10k + 2k training + 6 months × 4,167 productivity ramp loss = 37k true hiring cost. Most companies underestimate by 50%. SHRM data: average hire costs 1.5-2x annual salary - significant investment.

Example: 50,000 annual salary new hire. 20% recruiter fee = 10,000. Training costs 2,000. Productivity ramp 6 months at 50% productivity = 12,500 productivity loss. Total true cost 24,500 (49% of annual salary). Plus management time, onboarding, IT setup, equipment. SHRM estimate: 1.5-2x annual salary all-in.

Hiring cost categories: (1) Recruiter fees (15-25% of salary for permanent placements). (2) Job advertising. (3) Manager time interviewing (20-50 hours per hire). (4) Training (500-5,000+). (5) Productivity ramp (3-12 months at 50-80% productivity). (6) Onboarding admin. (7) Equipment/IT setup (500-2,000). (8) Replacement costs if leaves quickly. Reduction strategies: (1) Internal promotion (50-70% cheaper). (2) Internal referrals (30% cheaper than recruiters). (3) Direct sourcing via LinkedIn. (4) Contractor first (test before permanent). (5) Better retention (hiring twice for same role doubles cost). Best companies: allocate to retention vs constantly hiring.

A worked example

Try the defaults: recruiter fee of 20%, annual salary of 50,000, training cost of 2,000, productivity ramp of 6 months. The tool returns 24,500.00. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Recruiter Fee %, Annual Salary, Training Cost, and Productivity Ramp (months). Frequency and unit price pull the total in different directions. The biggest surprise for most people is how small recurring amounts compound into large annual figures — that's where this calculation earns its keep.

The formula behind this

Total = recruiter fee + training + (monthly salary × ramp months × 50%). Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

When to revisit

Your time isn't priced once. As your rate changes (promotions, side income, efficiency gains), the threshold shifts. Re-run this after any meaningful earnings change so the "outsource vs do-it-yourself" math stays current.

What this doesn't capture

Hour-for-money math misses the tasks you enjoy and the ones that build skill. The number is an efficient-markets view of your time; real decisions about what to do yourself vs outsource should also weigh what you learn and what you enjoy.