FREE CALCULATOR · NO SIGN-UP
Placement fee calculator.Fee, invoice and rebate in one go.
Work out a permanent placement fee from the salary, the invoice total with tax, and what you refund if a hire leaves during the guarantee period.
The placement
Only if your terms charge on them
Your VAT or GST rate, e.g. 19 Germany, 20 UK, 18 India
Rebate if the hire leaves
Refund if they leave on or before each week
$18,000 invoice total.
If they leave after 6 weeks, you refund $9,000 and keep $9,000.
| Hire leaves | Refund | You keep |
|---|---|---|
| Up to week 4 | $14,40080% | $3,600 |
| Weeks 5–8 | $9,00050% | $9,000 |
| Weeks 9–12 | $4,50025% | $13,500 |
| After week 12 | $00% | $18,000 |
| At other rates | Fee |
|---|---|
| 15% of salary | $13,500 |
| 20% of salary | $18,000 |
| 25% of salary | $22,500 |
| 30% of salary | $27,000 |
How the fee and rebate are worked out.
Fee. For a percentage fee, the fee is the percentage of base salary plus any bonus or allowances your terms include. For a flat fee, the calculator shows what that works out to as a percentage of the package.
Invoice total. The fee plus VAT or sales tax at the rate you enter.
Sliding-scale rebates. Each step refunds its percentage if the hire leaves on or before that week. With the default terms, a hire who leaves in week six falls in the “weeks 5–8” step, so you refund 50% of the fee. After the last step, nothing is refunded.
Pro-rata rebates. The refund falls in a straight line from 100% on day one to nothing at the end of the guarantee period: refund = fee × (1 − weeks worked ÷ guarantee weeks).
Rebates are worked out on the fee before tax. Your terms of business decide which terms apply, and whether the client must have paid on time to claim.
What is a typical recruitment agency fee?
Contingent permanent placement fees are usually between 15% and 25% of the candidate’s first-year base salary, and higher for hard-to-fill or senior roles. Retained executive search is often around a third of first-year cash compensation, paid in stages. The calculator shows what the same placement is worth at 15%, 20%, 25% and 30%.
Is the fee charged on base salary or total package?
Whatever your terms of business say. Many agencies charge on base salary only; others include guaranteed bonuses, car allowances or other fixed pay. Add anything your terms include in the bonus and allowances field and the fee is worked out on the total.
How does a recruitment rebate work?
A rebate (or refund) clause returns part of the fee if the candidate leaves, or is dismissed, within a guarantee period. A sliding scale refunds a set percentage in each band, such as 80% in the first four weeks. A pro-rata rebate refunds the unexpired share of the guarantee period. Some agencies offer a free replacement instead of a refund.
What is a normal guarantee period?
Eight to twelve weeks is common for contingent placements, with longer periods for senior hires. Rebates usually only apply if the client has paid the invoice on time and tells you promptly when someone leaves, so put those conditions in your terms.
Does the rebate include VAT or sales tax?
The calculator works out refunds on the fee before tax. In practice you issue a credit note for the refunded fee plus the tax charged on it, so the client gets the tax back too and you reclaim it from the tax authority.
MORE FREE TOOLS
You might also like.
- CalculatorsContingent vs retained calculatorCompare expected fees per job and per hour from contingent and retained work.Open the calculator
- CalculatorsContractor margin calculatorFind the margin on a contractor, or the charge rate you need, after employer costs.Open the calculator
- CalculatorsRecruiter KPI calculatorTurn a billing target into the calls, CVs and interviews it takes each week.Open the calculator
- CalculatorsRecruiter commission calculatorModel a commission scheme and see what each desk really makes the business.Open the calculator
YOUR NEXT CHAPTER STARTS HERE
Less admin.
More “you got the job.”
Let’s walk through a better working day for your agency.
Updated