Free tool · 02

Hiring-Cost Calculator

What does an empty seat cost? What about the wrong hire? Use your own numbers. Every formula is shown below.

Your inputs

The numbers below are placeholder examples only. Replace them with your own.

01 The role

Annual base salary ($)

Benefits & taxes (% of salary)Your own payroll load

Working days per year

02 While the seat is open

Working days the seat is open

Productivity loss while open (%)Share of the role’s work that doesn’t get done

Value of the role (× salary)Use 1 to value output at salary. Raise it if the role produces more than it costs.

Cover costs ($)Overtime, temps or contractors

Recruiting spend ($)Job ads, fees, tools

Team interview hours

Interviewer hourly cost ($)

03 If the hire doesn’t work out

Months before they leave

Productivity loss during that time (%)How far short of a strong performer

Onboarding & training ($)

Extra manager hoursCoaching, reviews, exit

Manager hourly cost ($)

Separation costs ($)Severance, legal, admin

Other team impact ($)Rework, lost clients, anything you can price

Include the cost of re-opening the seat to replace them

Cost of the open seat$0

Cost of a bad hire$0

Daily value = salary × value multiple ÷ working days per year ($0/day)
Lost output = daily value × days open × productivity loss %
Interview time = interview hours × interviewer hourly cost
Open seat = lost output + cover costs + recruiting spend + interview time
Pay while in seat = salary × (1 + benefits %) × months ÷ 12 ($0)
Pay for work not delivered = pay while in seat × productivity loss %
Manager time = extra manager hours × manager hourly cost
Bad hire = pay for work not delivered + onboarding + manager time + separation + other impact (+ open seat, if included)

An estimate built only from your inputs. Not financial or legal advice.

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