AirTA

Agency vs In-House Recruitment Calculator

Compare the total cost of an external agency vs. building an in-house recruiter, including vacancy cost.

Role Details

Enter the salary and role type

Agency Recruitment

External agency handles sourcing

Typical range: 30-40%
Briefings, reviews, coordination

Agency Fee:

¥0

Internal Cost:

¥50,000

Vacancy Cost:

¥0

Total Cost:

¥0

In-House Recruitment

Internal team handles sourcing

Job boards, tools, sourcing
Recruiter, manager, team time

Direct Costs (¥):

¥400,000

Hidden Costs (¥):

¥750,000

Vacancy Cost:

¥0

Total Cost:

¥0

In-house recruitment saves ¥0 compared to agency with the same timeline.

Building the In-House Case

At these numbers an in-house hire is the cheaper route for this job. Where that stops being true, and which jobs stay with external partners, is worked through in the guide.

What You Can Do With It

Decide Whether to Hire Internal TA

Before adding headcount to your talent acquisition team, model the breakeven against using external agencies for your current hiring volume.

Justify an External Search Investment

Use the calculator output to make the business case for an exclusive search engagement: factor in vacancy cost, not just the fee.

Build a Three-Year Hiring Cost Plan

Model how cost-per-hire changes as you scale. The breakeven point shifts when you add roles, change average salary, or improve in-house time-to-fill.

Frequently Asked Questions

What costs does the calculator include?

External agency fees (when used), in-house recruiter salary and overhead, hidden costs like sourcing tools and ATS, and the vacancy cost based on time-to-fill.

What is "vacancy cost"?

The opportunity cost of an unfilled role, typically modeled as a percentage of the salary to represent lost productivity until someone starts.

When is in-house cheaper?

Usually when annual hiring volume is high enough that the loaded recruiter cost (salary + overhead + tools) per hire is less than the agency fee per hire.

When is an agency cheaper?

Lower hiring volume, specialist roles, confidential searches, or roles requiring market mapping that in-house teams can't access.

Should I use both?

Most companies do. The model helps you decide where the line should sit — which roles get the in-house team, which get external partners.

Is this for the Japan market?

Yes. Default assumptions reflect Japanese hiring conventions (typical agency fees, recruiter salary bands, average time-to-fill).

Related Tools

Recruitment Fee Calculator

Compare recruitment fee structures. See how percentage-based fees translate to real costs across salary levels.

Decide Which Jobs Go to Agencies

The model shows where an external partner beats an in-house hire. For the jobs on that side of the line, proposals arrive with fees and timelines stated upfront.