The Time to Hire Yearly Cost Estimator estimates the annual vacancy-related cost associated with the average time required to fill positions. It combines yearly hiring volume, average time to hire, and an estimated vacancy cost per day so workforce and recruiting teams can translate a time metric into a budget-oriented scenario.Use it to compare a current hiring process with faster or slower alternatives. The estimate is intentionally simple: it focuses on the cost attached to elapsed vacancy time and does not automatically add recruiter salaries, agency fees, onboarding costs, or cost per hire unless those amounts are already reflected in the daily vacancy-cost input.
1. Enter yearly hires
Use the number of positions expected to be filled over a typical year.
2. Enter average time to hire
Use one consistent definition of time to hire across the roles included.
3. Enter daily vacancy cost
Estimate the cost or lost value associated with one position remaining vacant for one day.
4. Review annualized cost
The result multiplies vacancy-days across annual hiring volume by the daily cost assumption.
The estimator assumes each annual hire represents one vacancy with the same average duration and daily vacancy cost.
This scenario attributes $480,000 of annual vacancy-related cost to the modeled hiring cycle length.
This scenario depends heavily on how your organization defines daily vacancy cost.
Given:
100 hires per year, 32 days average time to hire, and $150 vacancy cost per day.
Calculation:
100 × 32 × $150 = $480,000. Cost per filled role = 32 × $150 = $4,800.
Result:
Estimated yearly time-to-hire cost = $480,000.
This scenario attributes $480,000 of annual vacancy-related cost to the modeled hiring cycle length.
Organizations define these metrics differently. Use the definition your team tracks consistently and avoid comparing results built from different start dates.
It can represent lost output, overtime, temporary coverage, service delays, or another internally defined cost. Use one transparent method across scenarios.
Yes. Run the calculator with the target number of days and compare the annual result with your current scenario.
Only if you intentionally include them in the daily vacancy-cost assumption. The formula itself models vacancy time rather than all recruiting expense.
Annualization makes a per-hire timing issue easier to compare with yearly recruiting budgets and improvement initiatives, especially when hiring volume is substantial.