Recruitment fee calculator
Last updated 12 November 2026 · By the Scowter team
Short answer
A recruitment agency fee is usually the salary times the agency's rate. At a typical 20% contingency rate, a $100,000 hire costs $20,000. Retained search at one-third costs about $33,333. A flat fee stays the same whatever the salary. Enter your numbers below to compare all three.
| Model | How it is worked out | Fee per hire | Total for 1 hire | When you pay |
|---|---|---|---|---|
| Contingency | 20% of first-year salary | $20,000 | $20,000 | Only when you hire someone the agency sent |
| Retained search | 33% of first-year salary | $33,000 | $33,000 | In stages, usually even if nobody is hired |
| Flat feeLowest | Fixed amount per hire | $10,000 | $10,000 | As agreed in the contract |
Flat fee is the lowest here: $23,000 less than retained search for 1 hire.
Estimates only. Real fees depend on your contract, the role and the market. Some agencies charge on total first-year pay (with bonus), not base salary.
How the three fee models work
Contingency recruiters are paid only when you hire a candidate they sent, so they carry the risk. Retained firms are paid in stages for a dedicated search, usually for senior roles, and you pay even if nobody is hired. Flat-fee recruiters agree one fixed price before the search starts, so the cost does not grow with the salary.
Placement data from one recruiter network found an average fee of 21.5% on an average starting salary of $93,407 (Top Echelon, 2018 data). Read the full breakdown in our guide to recruitment agency fees and flat fee recruiting.
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Get recruitment leads →Common questions
How much does a recruitment agency charge?
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Most agencies charge a percentage of the new hire's first-year salary. Published guides put contingency fees at about 15% to 25%, with 20% the most quoted, and retained search at about one-third. Flat-fee recruiters charge a fixed amount, which one guide puts at $5,000 to $20,000 per hire.
How do I calculate a recruiter fee?
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Multiply the first-year salary by the agency's rate. A 20% contingency fee on a $100,000 salary is $20,000. For a flat fee, the fee is the fixed amount in the contract, whatever the salary.
What is the difference between contingency and retained recruiting?
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With contingency you pay only when you hire someone the agency sent. With retained search you pay in stages, often a third at the start, a third at a milestone and a third at the end, usually whether or not the role is filled.
When is a flat fee cheaper than a percentage?
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A flat fee is cheaper whenever the percentage fee would be higher than the fixed amount. The higher the salary, the more a flat fee saves, because a percentage fee grows with pay and a flat fee does not.
Is the fee based on base salary or total pay?
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It depends on the contract. Many agencies use base salary, while retained firms often use total first-year cash pay, including bonus. Check the contract before you compare quotes.
Sources
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