Placement Fee Calculator
Enter the salary and your fee percentage to see the placement fee, the recruiter’s commission and what the agency keeps.
Placement fee
$18,000
Recruiter commission
$1,800
Agency keeps
$16,200
15%
$13,500
20%
$18,000
25%
$22,500
30%
$27,000
Runs in your browser. Nothing you type is stored or sent anywhere.
How a placement fee is calculated
A contingency placement fee is a percentage of the candidate’s first-year base salary, invoiced when they start. At 20% of a $90,000 salary, the fee is $18,000. Contingency fees in the US commonly fall somewhere between 15% and 25%, with retained and executive search often higher, but the number that counts is the one in your own terms of business.
Your terms should also say what the percentage applies to. Many agencies charge on base salary only. Some include a guaranteed bonus or sign-on payment, which raises the fee, so agree it with the client before the offer goes out rather than on the invoice.
Most terms add a guarantee or rebate period: if the hire leaves within an agreed window, the agency refunds part of the fee on a sliding scale, or replaces the candidate. It is worth knowing which placements are still inside that window before you count the fee as earned.
From the fee to the commission
Once the fee is invoiced, the recruiter who made the placement is usually owed a share of it. How that share is set is up to each agency: a flat percentage, a tiered rate above a threshold, or a split when two recruiters worked the same role. This calculator applies one flat percentage, so treat it as a starting point for your own plan.
Doing this by hand for every placement is where agencies lose time and make mistakes. In Beagler, the placement, its invoice and the recruiter’s commission sit on one record, and the commission is carried into payroll for your own team. That is built for small staffing firms and agencies, and for independent recruiters billing their own placements.
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Placement fees: frequently asked questions
How do you calculate a recruiter’s placement fee?
Multiply the candidate’s first-year base salary by your fee percentage. At 20% of a $90,000 salary, the placement fee is $18,000.
What percentage do recruiters charge?
Contingency fees in the US commonly fall between 15% and 25% of first-year base salary, and retained or executive search is often higher. Your own terms of business set the actual rate.
Is the fee based on base salary or total compensation?
It depends on your terms. Many agencies charge on base salary only, while some include guaranteed bonuses or sign-on payments. Agree it with the client before the offer is made.
What is a rebate or guarantee period?
An agreed window after the hire starts. If the candidate leaves within it, the agency refunds part of the fee, usually on a sliding scale, or finds a replacement.
Does this calculator store what I type?
No. The calculation runs in your browser, and nothing you enter is saved or sent anywhere.
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