How many placements does your agency need to break even?

A free calculator for owner-led recruitment agencies. Enter your costs and fees and see the answer instantly.

The numbers below are example values. Replace them with your own. Everything is calculated in your browser, and nothing you type is sent to us.

Your agency

Monthly figures unless stated.

Costs

Number of consultantsFee-earning consultants

Cost per consultantSalary, employer NI, pension, benefits and direct costs, per month

Other overheadsRent, systems, marketing, management and support salaries, finance, insurance

Permanent recruitment

Average fee per placementTreated as gross profit

Placements you make nowPer month, on average (optional)

Contract recruitment

Contractors on assignmentAverage number out at any time

Gross profit per contractor per weekCharge rate less pay and on-costs, weekly

Commission

Commission paid to consultantsShare of gross profit

Planning a hire?

Additional consultantsHow many more you are thinking of adding

Months before they billRamp-up period with no gross profit

To break even you need about

–

Enter your numbers to see the result.

Monthly cost base–

Gross profit needed (after commission)–

Contract gross profit per month–

Perm placements needed per consultant–

Estimated monthly operating profit now–

If you add the hires

Placements each new hire needs to cover their cost–

Perm placements needed in total–

Cost to carry them until they bill–

Illustrative only. A simplified model that excludes tax, rebates, seasonality, director pay (unless included in overheads) and any funding costs. It is a starting point for a conversation, not financial advice.

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How it is calculated

Monthly cost base = consultants × cost per consultant + other overheads
Gross profit needed = cost base ÷ (1 − commission %)
Contract gross profit = contractors × weekly gross profit × 52 ÷ 12
Perm placements needed = (gross profit needed − contract gross profit) ÷ average fee
Operating profit now = (perm placements × fee + contract gross profit) × (1 − commission %) − cost base
Each new hire needs: cost per consultant ÷ (1 − commission %) ÷ average fee, in placements a month

About the calculator

How is recruitment agency break-even calculated?

Add up your monthly fixed costs (consultant cost plus overheads), adjust for the share of gross profit paid out as commission, then divide the gross profit you need by the average gross profit per placement. The calculator does this for you, and shows the formula below.

Does the calculator send my numbers anywhere?

No. The calculation runs in your browser. The figures you type are not sent to us or stored.

How accurate is it?

It is a simplified model for planning conversations, not a forecast. It ignores tax, rebates, seasonality and ramp-up beyond what you enter, so treat the results as a starting point.