Cost of Vacancy Calculator
Estimate what an unfilled position costs each day it stays open — lost productivity from salary × value multiple or revenue per employee, minus work colleagues absorb, plus overtime and temp costs.
How it works
Annual value = Salary × Value multiple (or Revenue ÷ Employees) · Daily value = Annual value ÷ Working days per year · Cost of vacancy = Daily value × Days open × (1 − Share absorbed) + Extra costs
Cost of vacancy (COV), popularised by HR thought leader Dr John Sullivan, is the value a business loses while a job is unfilled. Because most employees produce more than they are paid, a common estimate multiplies salary by a value multiple, or uses revenue per employee for revenue-generating roles. Colleagues usually cover part of the work, which this calculator subtracts, while overtime, temps and agency fees are added. Comparing COV with the cost of a faster hiring process shows whether speeding up recruitment pays off.
Worked example
A role paying $60,000 with a value multiple of 2 produces $120,000 a year, or 120,000 ÷ 260 = $461.54 per working day. Open for 30 working days with colleagues absorbing 25% of the work, it loses 461.54 × 30 × 0.75 = $10,384.62 of productivity. Adding $2,000 of overtime and temp cover gives a cost of vacancy of $12,384.62; every extra week open costs $1,730.77 more.
Sources: Dr John Sullivan — Cost of vacancy formulas for recruiting and retention managers
Frequently asked questions
How do you calculate the cost of a vacancy?
Work out the daily value the role produces (annual value ÷ working days), multiply by the working days the job is open, subtract the share of work colleagues cover and add any overtime or temp costs.
What value multiple should I use?
A multiple of 1 assumes the role is worth exactly its salary — a floor. Most estimates use 1.5–3 for typical roles; for sales or revenue-generating positions use revenue per employee or the quota the person carries.
Is cost of vacancy the same as cost per hire?
No. Cost per hire is what you spend on recruiting (ads, agencies, recruiter time). Cost of vacancy is the business value lost while the seat is empty. Both matter when deciding how much to invest in faster hiring.
Should I count calendar days or working days?
Use working days to match the daily value, which is based on working days per year. A role open for six calendar weeks is about 30 working days.
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Cost of vacancy is an estimate built on your assumptions about the role’s value; treat it as a planning figure, not an accounting loss.