What the calculator does
Fee and risk together.
- Fee from first-year salary and a percentage.
- Recruiter commission as a share of the fee.
- Guarantee period and the day a candidate leaves.
- Refund exposure under a pro-rated refund, a full refund or a replacement search with no cash refund.
The formulas
Simple arithmetic.
- Fee = salary × fee %.
- Recruiter commission = fee × recruiter share.
- Pro-rated refund = fee × (1 − days worked ÷ guarantee days), if the candidate leaves inside the guarantee.
Worked example
Salary $120,000 at 20% gives a $24,000 fee. With a 90-day pro-rated guarantee and a hire who leaves on day 45, the refund is $12,000 and the fee after refund is $12,000.
Check your agreement
Fee percentages, refund terms and guarantee periods come from your client agreement. Treat the output as arithmetic on the inputs you enter.
Frequently asked questions
What is a typical fee percentage?
It varies by role, market and client. Use the percentage in your agreement.
What is a replacement guarantee?
If the hire leaves within the guarantee, you search again for a replacement at no extra fee instead of refunding.