About this tool
Cost of an open role, explained
Estimate what an unfilled position costs: the output lost while the seat is empty, the slower first weeks of the new hire and the recruiting fee. Enter the salary, the days open and the value the role creates.
How to use it
- 1Pick a Start from preset (Junior role, Engineer or Sales lead) or set the Yearly salary yourself.
- 2Set the Working days open and the Value created per $ of salary.
- 3Under Hiring, adjust the Recruiting fee, Time to full productivity, Output during ramp-up and Working days per year.
- 4Read the Value lost while the seat is empty, the cost per day and per week, and the Total cost of the vacancy.
How it works
How the cost of a vacancy is calculated
A role is worth more than its salary, otherwise it would not be worth hiring. The calculator multiplies the salary by the value multiple you choose and spreads it over the working days in a year, 260 by default. That is the value the role creates each working day; the empty seat costs that times the days it stays open.
The new hire then takes time to reach full output: the ramp-up loss is the weekly value times the ramp-up weeks times the share of output missing. The recruiting fee is a percentage of the salary. The three add up to the total cost of the vacancy.
With the starting figures, a $95,000 salary, a 2× multiple, 45 working days open, 8 weeks of ramp-up at 50% output and a 20% fee, the empty seat costs $32,885 ($731 a day), ramp-up $14,615 and the fee $19,000: $66,500 in total.
The multiple is your own assumption and the most important input. Revenue roles can be estimated from their targets; for others, think about the work that piles up or the projects that wait. Job ads and interview time are not included.
Cost per day = Salary × Value multiple / Working days per year. Empty seat = Cost per day × Days open. Ramp-up = Cost per week × Ramp-up weeks × (1 − Output during ramp-up). Total = Empty seat + Ramp-up + Salary × Fee %
When to use it
Ways people use it
Making the case for a recruiter
Compare the daily cost of the empty seat with the agency fee, and see how many days a faster search needs to save to pay for itself.
Prioritizing open roles
Run each open position and start with the ones that cost the most per day. Copy results gives you the figures as text for a hiring plan.
Justifying a faster process
The If the role stays open longer table shows the cost at 30, 60, 90 and 120 days. Download it as CSV or compare two timelines with scenario B to agree on fewer rounds.
FAQ
Questions people ask
How do you calculate the cost of a vacant position?
Estimate the value the role creates per working day, multiply by the days it stays open, then add the output lost while the new hire ramps up and the recruiting fee. This calculator shows each part and the total.
What multiple of salary should I use?
There is no universal figure. A multiple of 1 assumes the role is worth exactly its salary, the floor. Choose a value you can defend and keep it the same when you compare roles.
Does the cost of a vacancy include recruiting costs?
It includes the recruiting fee, as a percentage of salary. Job ads and interview time are not counted; set the fee to 0% if you hire without an agency.
Why count working days instead of calendar days?
A role creates value on the days people work, so counting weekends would overstate the cost. 260 is 52 weeks of 5 days; lower Working days per year to take out holidays.