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Cost per hire refers to the measurement of the total cost that a company spent on hiring employers. Easily measurement it by this free cost per hire calculator.

## What is Cost Per Hire in Recruitment:

Cost per hire in recruitment means how much charge has been spent by a company for hiring employers. We can calculate it by total internal cost plus total external cost divided by total numbers of hires.

## What is the Recruitment Budget?

Recruitment budget means to total cost where a company spent for Appointment. It includes internal and also external costs. To better understand, follow the list of these 2 sectors.

#### Internal Cost Sectors:

Internal cost means to that has spent on internally at company.

- Employers salaries
- Candidate assessment costs
- Interview costs

#### External Cost Sectors:

External cost means to company spent that money outside of their company.

- Recruiting events
- Advertising cost it could be social media advertising, TV advertising, newspaper advertising, and any others.
- Recruiter fees

## How to Calculate Cost Per Hire in Recruitment?

How we calculate the cost per hire on our calculator? It’s a straightforward process! Just follow the below formula.

### CPH Calculation Formula

The exact formula is:

**Cost per hire (CPH)=(Internal cost + External cost) / Number of Hires**

### CPH Calculation Example

Suppose a company spent $3000 internally and $1000 externally for 5 employees hire. Now see the example of how to calculate it.

CPH= (3000+1000) ÷ 5

=4000÷5

=800

## Cost Per Hire Calculator Excel:

It’s really super easy to calculate CPH on excel also. Just take 2 columns and 4 ROWS. Then input in serially like the below table:

Internal costs: | Your company internal cost for hire |

External costs: | Your company external cost for hire |

Number of Hires: | Total hired employers |

Now take another row and type CPH on first column and then type this formula on second column:

*Note: Replace the text with your cell number*

**=(Internal cost + External cost) ÷ Number of Hires**

Unfortunately if you can’t understand then look at the below screenshot.