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Excel Cost Per Hire Formula

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One-Click Copy

(Total_Internal_Costs + Total_External_Costs) / Total_Hires

Quick context

• Works in both Excel and Google Sheets.
• Use when you need consistent, auditable results.
• Copy the snippet above and adjust only the ranges.

When to use

Calculates the average cost incurred to hire a new employee.

Determine how much you spend to acquire talent.

Calculate Cost Per Hire

Determine how much you spend to acquire talent.

Inputs

Total_Internal_Costs Recruiter salaries, referral bonuses, etc.
Total_External_Costs Agency fees, advertising, background checks, etc.
Total_Hires Number of people hired.

Practical Example

=(5000 + 10000) / 5

Disclaimer: While we strive for accuracy, these formulas are provided "as is" without warranty of any kind. Please verify all results before use.