Cost per application

Cost per application (CPA) is a simple but important hiring metric - it tells you how much your company spends to get just one person to apply for a job. In other words, how much money does it take to attract a single applicant?

How to calculate CPA

To figure this out, start by adding up all the costs related to preparing and promoting a job listing. This includes:

• Job board fees
• Social media ads
• Recruiter time and effort
• Applicant Tracking System (ATS) fees
• AI tools like Grammarly for job descriptions
• Employer branding or career site enhancements

Once you have the total cost, divide it by the number of applications you received.

Example calculation

Let’s break it down with a real-world scenario.

Imagine your company is hiring for a new role, and you spend money on various recruiting efforts:

• $300 on a job board posting
• $200 on social media ads to boost visibility
• $500 for a recruiter’s time and effort
• $100 on an AI tool to refine the job description

That brings your total hiring spend to $1,100.

Now, let’s say 50 people apply for the job. To calculate CPA:

CPA = Total Cost ÷ Number of Applications
CPA = $1,100 ÷ 50
CPA = $22 per application

So, in this case, your company is spending $22 to attract each applicant.

Why CPA matters

Tracking CPA helps businesses understand if their hiring efforts are cost-effective. If your CPA is too high, it might mean you’re overspending on job ads or not reaching the right audience. If it's low, you may be getting great results at an efficient cost. Either way, knowing this number helps you make smarter hiring decisions!