How do you calculate a recruitment fee?
For many permanent placements, multiply the candidate annual salary by the agreed fee percentage, then adjust for retainers, fixed fees, taxes, or other commercial terms.
Use this tool to quote fees faster, sanity-check client terms, and connect placement economics back to job order priority and recruitment CRM reporting.
Fill the fields and run the tool to generate recruiter-ready output.
Use cases
The tool is built around a specific agency workflow, so the output can be used in real recruiting decisions instead of sitting as a disconnected calculator.
Quote contingent search fees before sending a client agreement.
Compare fee value across multiple job orders.
Estimate revenue impact from a placement before commission calculation.
Best practices
Confirm whether the fee is calculated from base salary, total compensation, contract value, or gross margin.
Separate retainer credit from final invoice amount so finance and recruiters see the same number.
Keep replacement guarantee terms visible because they affect placement risk and client expectation.
Workflow
Use the client agreement and job order to confirm fee percentage, payment terms, and replacement policy.
Open related pageEstimate placement revenue before committing recruiter time to the job order.
Open related pageConnect fee, start date, invoice timing, and replacement period to placement management.
Open related pageRelated resources
FAQ
For many permanent placements, multiply the candidate annual salary by the agreed fee percentage, then adjust for retainers, fixed fees, taxes, or other commercial terms.
Recruitment fee percentages vary by market, role complexity, seniority, and agreement type. Agencies should use their signed client terms as the source of truth.
That depends on the client agreement. Some agencies calculate on base salary, while others use total guaranteed compensation or contract value.