— TOOLS · RECRUITMENT FEE CALCULATOR

Recruitment fee calculator: what the invoice will say

Put in the salary and the agency's percentage. Get the fee, the VAT, what is due before anyone starts, what a rebate gives back if the hire leaves, and the same hire on ON3's 7% and 20% tiers. Every result has a link you can send to whoever signs it off.

Looking for a job? UK agencies don't charge candidates; the employer pays the fee. Join our engineer network →

Updated October 2026 · Free tool
By , co-founder and CEO of ON3 Works
In short

A UK agency fee is first-year base salary × the agency's percentage, plus 20% VAT. At the typical 20% for tech roles, a £75,000 hire costs £15,000 (£18,000 invoiced); retained search at 30% costs £22,500 with £7,500 due before a CV arrives. The same hire is £5,250 on ON3 Agentic or £15,000 on Atelier, success-only, with free replacement instead of a rebate.

Fee calculator · UK 2026

What will this hire cost in recruitment fees?

20%
Fee model
Rebate period in the agency's terms
Agency fee on this hire
£15,000£18,000 with VAT · 20% of £75,000
What you actually pay, and when
Due before the hire starts£0
Due when the hire starts£15,000
VAT at 20%£3,000
Total invoiced£18,000
If the hire leaves early: what comes back
Weeks 1–4: 100% refunded£15,000
Weeks 5–8: 50% refunded£7,500
Weeks 9–12: 25% refunded£3,750
After week 12: nothing refunded£0
Illustrative sliding scale. Most UK agencies refund in steps over 8–12 weeks, often only if the invoice was paid on time; the exact steps are in the terms of business. Each week the seat stays empty costs about £1,442 in salary alone.
The same hire with ON3 Works
ON3 Agentic · 7%, AI-led, free replacement within 60 days£5,250saves £9,750
ON3 Atelier · 20%, senior engineer interviews every finalist, free replacement within 90 days£15,000same fee
Both tiers are success-fee only: no deposit, no retainer, nothing invoiced unless you hire. VAT applies on top, as with any agency.
— 01 · The maths

What the calculator does with your numbers

The fee is the first-year base salary multiplied by the agency's percentage. UK contingency agencies charge 15–25%, with tech roles usually at 18–22%; retained search runs 25–33% and bills in three instalments. VAT at 20% goes on top of every fee, which turns a 20% fee into a 24% invoice. The full fee breakdown by model, seniority and specialism is in our UK recruitment agency fees guide.

  • ·Base salary, not package. Most terms define remuneration as base salary. If yours includes bonus, commission or car allowance, enter the total the terms would count.
  • ·Retained instalments. The calculator splits a retained fee into thirds. Some firms bill 30 / 30 / 40, and most set a minimum fee of £15,000–25,000 regardless of salary.
  • ·The rebate schedule is illustrative. Full refund in the first four weeks, half in weeks five to eight, a quarter in weeks nine to twelve is a common shape, not a standard. Your terms of business are the only version that counts.
  • ·Vacancy cost. The weekly figure is salary divided by 52: the direct cost of the seat staying empty, before the drag on the rest of the team.
— 02 · Worked examples

What common UK engineering hires cost in fees

RoleSalaryAgency feeWith VATON3 Agentic 7%ON3 Atelier 20%
Junior backend engineer£38,000£6,840 (18%)£8,208£2,660£7,600
Mid-level full-stack developer£65,000£13,000 (20%)£15,600£4,550£13,000
Senior backend engineer£95,000£19,000 (20%)£22,800£6,650£19,000
Lead / staff ML engineer£120,000£26,400 (22%)£31,680£8,400£24,000
VP of Engineering (retained)£150,000£45,000 (30%)£54,000—£30,000

Agency percentages are the typical UK ranges for each level; the retained example assumes 30% in three instalments. ON3 fees are success-only and exclude VAT.

Across these five hires the agency fees add up to £110,240 before VAT. The same five on ON3 Atelier come to £93,600, with a senior engineer interviewing every finalist, and the four non-executive roles on Agentic come to £22,260.

— 03 · Reading the terms

Four clauses that change the number the calculator gives you

  • ·Rebate conditions. Rebates are often void if the invoice was paid late, if the hire was made redundant rather than leaving, or if you didn't notify the agency within a set number of days.
  • ·Introduction period. If you hire a candidate the agency introduced within 6–12 months, even through another route, the fee is still due. Keep a record of who introduced whom.
  • ·Exclusivity and multi-agency. Two agencies sending the same CV means a dispute over who introduced first. Exclusivity avoids it and is the strongest lever for a lower percentage.
  • ·Minimum fee. Common on retained and executive work; on a £60,000 role a £20,000 minimum is a 33% fee in disguise.

ON3's terms are the short version: a success fee of 7% or 20%, nothing invoiced unless you hire, and a free replacement within 60 or 90 days rather than a sliding rebate. The tiers are set out on the pricing page, and the cost comparison with a traditional agency on a real hire is in AI recruiter cost vs agency fees.

— 04 · Questions

Recruitment fees: frequently asked questions

How is a recruitment agency fee calculated?

Multiply the candidate's first-year base salary by the agency's percentage. A £75,000 hire at 20% is a £15,000 fee, plus VAT at 20%, so £18,000 invoiced. Most UK agencies use base salary, not the package; a few include guaranteed bonuses or car allowance, so check the definition of 'remuneration' in the terms of business before you sign.

Do recruitment agencies charge VAT on their fees?

Yes. Recruitment fees in the UK are standard-rated, so 20% VAT is added to the placement fee. Agencies quote percentages before VAT, which is why a 20% fee on a £75,000 salary arrives as an £18,000 invoice. VAT-registered employers reclaim it; charities and some financial services firms often cannot.

What is a rebate period?

The weeks after the start date during which you get some of the fee back if the hire leaves or is dismissed. UK contingency terms typically run 8–12 weeks on a sliding scale: a full refund in the first weeks, falling in steps to nothing at the end. Many terms make the rebate conditional on the invoice having been paid on time. ON3 replaces the hire free within 60 days (Agentic) or 90 days (Atelier) instead of refunding.

What is the difference between a contingency and a retained fee?

A contingency fee is paid only if you hire, usually 15–25% of salary. A retained fee is 25–33% paid in three instalments: on engagement, on shortlist and on placement, so a third is spent before you see a CV. Retained buys a dedicated search; contingency buys speed and no risk. ON3's 7% and 20% tiers are success-only with no instalments.

How much do recruitment agencies charge for contractors?

Contractors are priced differently: the agency adds a margin of 12–18% to the contractor's day rate rather than charging a percentage of salary, so a £500-a-day contractor costs you £560–590 a day. Over a six-month contract that margin often exceeds a permanent placement fee for the same role.

Want the number for your actual role?

Tell us the role, level and location. You get a fee quote on both tiers and a qualified shortlist within 24 to 48 hours.

Get a fee quote →
Or book 15 minutes with our CEO
Related reading

Sources and assumptions

Fee ranges. UK contingency 15–25%, tech 18–22%, retained 25–33% in three instalments: Recruitly (2026), Leonar (2026), Valuable Recruitment (2026).

VAT. Recruitment services are standard-rated in the UK; 20% is added to the fee on every invoice.

Rebate schedule. Illustrative sliding scale over 8 or 12 weeks; agency terms of business vary and govern.

ON3 Works. 7% Agentic and 20% Atelier success fees, no deposit; free replacement within 60 days (Agentic) or 90 days (Atelier).