Calculating Cost Per Interview

Hiring great talent is vital for any organization, but few businesses pause to understand just how much each interview actually costs. When you tally up the hours, resources, and financial input, the Cost Per Interview can be surprisingly high. Understanding and calculating this metric is critical—not just for budget transparency, but for optimizing your recruitment process and making better hiring decisions.

Whether you're a startup scaling quickly or an enterprise tightening its hiring funnel, knowing your Cost Per Interview can reveal inefficiencies and boost ROI. Let’s break it down.

Why Cost Per Interview Matters

Cost Per Interview is a recruitment metric that measures the total expense incurred by an organization to conduct one candidate interview. It goes beyond just salaries and includes factors like:

• Recruiter and interviewer time
• Scheduling and software tools
• Travel or relocation expenses
• Opportunity cost of pulling team members from core work

By measuring this, companies gain valuable insight into the efficiency of their hiring processes. It enables smarter budgeting, better time management, and informed decisions about where to allocate recruitment resources.

How to Calculate Cost Per Interview

Calculating Cost Per Interview involves compiling several cost categories. Here's a simple formula you can start with:

Basic Formula:

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Cost Per Interview = Total Interviewing Costs / Number of Interviews Conducted 

But to truly understand it, let’s break down what goes into those “total interviewing costs.”

1. Salaries of Interviewers and Recruiters

Factor in the hourly wage of every employee involved:

• Recruiters
• Hiring managers
• Team leads
• Technical assessors or panel members

Example:
If three interviewers each spend 1 hour per interview and their average hourly rate is $50:

• Interview labor cost per interview = 3 x $50 = $150

2. Candidate Sourcing and Screening

This includes:

• Job board fees
• Resume screening software
• ATS (Applicant Tracking System) subscriptions

Example:
If you spend $3,000/month on sourcing tools and conduct 100 interviews, that’s $30 per interview.

3. Administrative Costs

These include:

• Time spent scheduling interviews
• Email communication
• Follow-ups and candidate coordination

Often overlooked, this soft cost adds up, especially at scale.

4. Facilities or Virtual Platform Fees

In-person interviews may require:

• Meeting space
• Office utilities
• Travel reimbursements

Remote interviews often rely on paid tools like Zoom Pro or MS Teams Business.

5. Opportunity Cost

Time spent interviewing is time not spent building, managing, or selling. Estimating this loss gives a clearer picture of indirect expenses.

Real-World Example

Let’s say your company conducted 50 interviews last month. Here’s what your breakdown might look like:

Your Cost Per Interview would be $300.

How to Reduce Cost Per Interview Without Compromising Quality

Reducing this cost doesn’t mean cutting corners. It’s about working smarter. Here are proven strategies:

✅ Streamline Screening

• Use AI-driven resume screening to filter unqualified candidates.
• Add pre-recorded video assessments to vet communication skills early.

✅ Group Interviews

Conducting panel interviews reduces repetitive tasks and condenses decision-making time.

✅ Optimize Scheduling

Use tools like Calendly or GoodTime to automate interview scheduling and reduce back-and-forth emails.

✅ Use Scorecards

Structured evaluation criteria reduce time spent debating candidate fit, thus saving resources.

✅ Invest in Training

Train interviewers to assess quickly and effectively. A 15-minute well-conducted interview beats an unstructured 1-hour one.

Why Businesses Overlook This Metric

Despite its importance, many companies don’t actively track Cost Per Interview. Why?

• Lack of visibility: Costs are spread across departments.
• Focus on hire metrics: Emphasis is often on cost per hire, not the steps before.
• Difficulty in assigning value: Opportunity costs and intangible effort are hard to measure.

However, as hiring budgets tighten and efficiency becomes paramount, companies that understand this metric have a competitive edge.

How It Influences Broader Recruitment Metrics

Cost Per Interview isn’t just a standalone figure. It impacts:

• Cost Per Hire: Higher interview costs inflate overall hiring expenses.
• Time to Hire: More interviews per candidate can delay decisions.
• Candidate Experience: Lengthy or repetitive interviews frustrate applicants and harm employer branding.

In fact, a recent Glassdoor study found that candidates value a concise and well-organized process—and companies that streamline interviews see better acceptance rates.

The Bottom Line

Your hiring process is only as efficient as the effort you put into tracking it. By calculating your Cost Per Interview, you’re not just crunching numbers—you’re making your entire hiring pipeline smarter and more sustainable.

It helps answer critical questions:

• Are we spending too much time on the wrong candidates?
• Is our interview-to-offer ratio healthy?
• Can automation improve efficiency?

The best companies continuously analyze and optimize their processes. Start tracking today, and you’ll find opportunities to save money, reclaim valuable time, and make hiring a strategic advantage—not a financial burden.

FAQs: Cost Per Interview

1. What is Cost Per Interview?

Cost Per Interview refers to the total cost incurred to conduct a single interview. This includes salaries, tools, scheduling, and other associated costs.

2. Why should companies track Cost Per Interview?

It provides transparency, helps reduce hiring inefficiencies, and aids in better budget planning.

3. How is Cost Per Interview different from Cost Per Hire?

Cost Per Interview focuses on the cost of each individual interview, while Cost Per Hire calculates the cost of bringing one candidate onboard, which includes multiple stages beyond interviews.

4. What tools can help lower Cost Per Interview?

ATS platforms like Greenhouse or Lever, scheduling tools like Calendly, and structured interview templates can significantly lower costs.

5. Is it normal for Cost Per Interview to vary by role?

Yes. Senior-level roles or technical positions typically require more resources and time, raising the Cost Per Interview compared to entry-level roles.