Cost of a bad hire calculator
Most calculators multiply salary by a percentage and call it an answer. This one starts from published benchmarks, lets you swap in your own numbers, and shows the source behind every figure, so the total is something you can defend.
Takes about two minutes. Nothing is gated and no email is required.
The role
Base salary for the role, before benefits. Used whenever we estimate from pay.
Role level
Executive searches cost far more, so the hiring benchmark changes with level.
Hiring them, then hiring again
We count the search twice: the one that produced this hire, and the one to replace them.
Median cost per hire for non-executive roles. Applied to each search.
Onboarding and training
What you invested in getting them up to speed.
Average direct learning expenditure per employee (2024 data), used as a proxy for formal onboarding and training.
Assumptions
Sourced defaults. Replace any of them with your own.
Days from opening the replacement req to an accepted offer.
Turns salary into a true hourly cost, including benefits. Only used where we price someone's time.
U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation
Costs only you can measure
These vary too much by role to benchmark, so they are left out unless you add them. Include only what actually happened.
Measurable cost of this bad hire
At least $3,854
A floor, not a ceiling. Lost productivity varies too much by role to benchmark, so it only counts if you add it.
About 74 days until the seat is productive again
See how Lever helps teams make more informed hiring decisions.
Request a demoHow we calculated this
Every default comes from a published source, linked below. Anything that depends on the specific role is left out until you add it, so the starting number is a floor you can defend rather than a headline.
Always counted
Hiring cost, counted twice
The search that produced this hire, and the search to replace them. If you don't track recruiting hours, we use SHRM's median cost per hire for the role level.
Onboarding and training
The ramp-up that didn't pay off. The benchmark is ATD's average learning spend per employee, a proxy for formal onboarding and training.
Counted only if you add them
Lost productivity
Only counted if you add it, because it depends entirely on the role. Enter a figure you can measure, or estimate it from pay.
Manager and team time
Coaching, performance conversations, rework, and covering the gap.
Severance
Enter what you paid, or estimate it with the most common formula employers use.
Customer or revenue impact
Entered directly. Leave out anything already counted as lost productivity so it isn't counted twice.
How we turn salary into an hourly cost
Wherever we price someone’s time, we start from their salary and add the cost of benefits, using the ratio of total compensation to wages published by the Bureau of Labor Statistics.
(annual salary ÷ 2,080 hours) × 1.43
Why the replacement timeline has no dollar value
After a bad hire leaves, the seat sits empty while you recruit, then the replacement takes time to reach full output. That delay is real, but pricing it means guessing what an empty seat is worth, and that guess would swamp every sourced number above. So we show it as time.
time to fill + time to productivity
Benchmarks and sources
Every default we supply, and where it comes from. Anything you enter yourself replaces these.
| Benchmark | Default | Source |
|---|---|---|
| Working hours per year | 2,080 | Standard full-time year: 40 hours × 52 weeks |
| Fully loaded cost multiplierPrivate-industry wages averaged $32.82 an hour and benefits $14.07. Total compensation divided by wages is 1.43. | 1.43 | U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation |
| Cost per hire, non-executiveMedian cost per hire for non-executive roles. | 1,300 | SHRM 2026 Recruiting Benchmarking Report |
| Cost per hire, executiveMedian cost per hire for executive roles. | 15,000 | SHRM 2026 Recruiting Benchmarking Report |
| Onboarding and training spendAverage direct learning expenditure per employee (2024 data), used as a proxy for formal onboarding and training. | 1,254 | ATD 2025 State of the Industry |
| Severance, weeks of pay per year of serviceThe most common formula, used by 57% of employers. | 1 | ASE 2024 Severance Pay, Policies & Practices Survey |
| Time to fillMedian calendar days to fill a non-executive position. | 39 | SHRM 2026 Recruiting Benchmarking Report |
| Time to productivityMedian calendar days for a new hire to reach expected productivity, across a cross-industry sample of 566 companies. | 35 | APQC Open Standards Benchmarking |
What this calculator doesn’t do
- It doesn’t multiply salary by a fixed percentage. There is no published basis for a single number that fits every role.
- It doesn’t assume a default level of underperformance. That depends on the role, so it only counts if you supply it.
- It doesn’t put a price on morale, attrition, or reputation. Those effects are real but can’t be measured reliably.
- It doesn’t claim the whole cost was preventable. Some hires don’t work out even with a strong process.
Where a better process actually helps
No hiring process guarantees every hire works out. What helps is more job-relevant evidence before the offer, so fewer decisions rest on a resume alone.
Define what matters before you compare
Evaluate candidates against criteria you set for the role, and see where they align and where a closer look is needed before an offer.
Learn moreAI Screening by VONQLook further than the resume
Gather structured, job-relevant answers early, so a polished resume isn't the only evidence you have. Recruiters still make the call.
Learn moreSkills assessmentsValidate the skills that matter
Bring assessment platforms into your hiring workflow and see what a candidate can actually do, not just what they say they can.
Learn moreCost of a bad hire, answered
The practical questions that come up when you put a number on this.
Make more informed hiring decisions
See how Lever helps your team gather better evidence about candidates before extending an offer.