Select commission, annual salary basis or rate, then enter the two required values. Use the compensation basis in your agreement.
Recruiter Commission Formula
The calculator uses annual salary, commission rate, and recruiter commission. Select the value to solve for and enter the other two.
- Commission = recruiter commission in dollars
- Salary = employee’s annual salary in dollars
- Rate = recruiter commission rate as a percentage
If you enter salary and rate, the calculator finds the commission amount. If you enter salary and commission, it finds the commission rate. If you enter commission and rate, it finds the salary the commission was based on.
Illustrative Recruiter Commission Rates
Percentage-based placement fees may use first-year compensation. The table below is illustrative, not a verified market benchmark. Use the rate and compensation basis in your recruiting agreement; an individual recruiter’s commission may differ from an agency’s fee.
| Recruiting situation | Illustrative commission rate | Example on $80,000 salary |
|---|---|---|
| Standard contingency placement | 15% to 25% | $12,000 to $20,000 |
| Specialized or hard-to-fill role | 20% to 30% | $16,000 to $24,000 |
| Executive search | 25% to 35% | $20,000 to $28,000 |
| Internal recruiter bonus or split | Varies by plan | Depends on employer policy |
Commission Amounts by Salary and Rate
| Annual salary | 15% rate | 20% rate | 25% rate | 30% rate |
|---|---|---|---|---|
| $50,000 | $7,500 | $10,000 | $12,500 | $15,000 |
| $75,000 | $11,250 | $15,000 | $18,750 | $22,500 |
| $100,000 | $15,000 | $20,000 | $25,000 | $30,000 |
| $150,000 | $22,500 | $30,000 | $37,500 | $45,000 |
Example Recruiter Commission Calculations
Example 1: Calculate recruiter commission
You have an employee annual salary of $90,000 and a recruiter commission rate of 20%.
The recruiter commission is $18,000.
Example 2: Calculate commission rate
A recruiter earned $22,500 on a placement with a $100,000 annual salary.
The recruiter commission rate is 22.5%.
FAQ
What salary basis should you use for a recruiter commission?
Use the compensation basis specified in the recruiting agreement. Some agreements may include expected bonus, first-year total compensation, draw, or guaranteed compensation. The calculator works from the salary number you enter, so use the same compensation basis listed in the fee agreement.
Is recruiter commission the same as the fee charged to the employer?
Not always. In agency recruiting, the employer may pay a placement fee based on the candidate’s salary. The individual recruiter may receive all of that fee, part of it, or a separate commission based on an internal pay plan. This calculator calculates the percentage-based commission or fee from salary.
How do you calculate commission from a percentage?
Convert the percentage to a decimal by dividing by 100, then multiply by salary. For example, 25% becomes 0.25. On an $80,000 salary, the calculation is $80,000 × 0.25 = $20,000.
