Cost of Vacancy Calculator
A role costs your business money every day it stays open — typically about 1.5× the role's daily salary in lost output. A ₹15 LPA position in India works out to about ₹9,375 a day, or roughly ₹6.8 lakh over a typical 73-day search. Enter your numbers below.
The open role
= ₹13,00,000
Cost per day
₹8,125
- Over 73 days open
- ₹5.9 L
- If unfilled a full year
- ₹19.5 L
₹5,417/day salary × 1.5× impact × 73 days · 240 working days/year (India).
The productivity multiplier is a widely-used HR rule of thumb for the cost of lost output, applied in the India context. No India-specific benchmark has been independently published, so treat it as directional and adjust it to your role.
How the cost of vacancy is calculated
The calculator uses the salary-based formula HR teams trust most:
Daily cost = (Annual CTC ÷ 240) × productivity multiplier
Total = Daily cost × days open × open seats
- 1Take the role's annual cost-to-company (CTC).
- 2Divide the CTC by 240 working days → the daily salary cost.
- 3Multiply by a productivity multiplier (1.5× default) → value lost beyond salary.
- 4Multiply by days open × open seats → the total cost of vacancy.
- 240 working days reflects the India calendar after weekends, public holidays, and statutory leave.
- The productivity multiplier turns "lost salary" into "lost value" — an empty seat slows the people around it, so the real cost is more than the pay.
The productivity multiplier is a widely-used HR rule of thumb for the cost of lost output, applied in the India context. No India-specific benchmark has been independently published, so treat it as directional and adjust it to your role.
A worked example
Suppose you're hiring a mid-level engineer on ₹18 LPA, the role has been open 73 days, and you use the standard 1.5× multiplier:
- • Daily salary: ₹18,00,000 ÷ 240 = ₹7,500/day
- • Daily cost of vacancy: ₹7,500 × 1.5 = ₹11,250/day
- • Total over 73 days: ₹8.2 lakh
That's the cost of a single open seat — before recruitment spend, which is a separate number.
Frequently asked questions
What is the cost of vacancy?▾
Cost of vacancy (COV) is the money a business loses for every day a role stays unfilled. It combines the cost of the open seat with the output the role would have produced but didn't.
How do you calculate the cost of an unfilled position?▾
The common formula is: daily cost = (annual cost-to-company ÷ working days per year) × a productivity multiplier. Multiply by the number of days the role is open and the number of open seats. In India we use 240 working days a year.
What is a realistic productivity multiplier?▾
1× treats lost output as equal to salary; 1.5× (the default) accounts for the strain an empty seat puts on the rest of the team; 2× suits revenue-linked or high-impact roles; 3× suits executive roles. These multiplier ranges are widely-used HR rules of thumb for the value an empty seat costs beyond salary — treat them as directional and adjust to your role.
How many working days are in a year in India?▾
About 240, after weekends, public holidays, and statutory leave. The calculator uses 240 by default, and you can change it.
Is the cost of vacancy the same as cost per hire?▾
No. Cost per hire is what you spend to recruit (ads, agency fees, recruiter time). Cost of vacancy is what you lose while the seat is empty. They are separate numbers and both matter.
Methodology & sources
Working days (240): India leave and holiday norms (India-primary).
Salary defaults: representative India national salary benchmarks (2025-26) — editable, and they vary by sector and seniority.
Productivity multiplier: a widely-used HR rule of thumb for the value lost beyond salary, applied in the India context. No India-specific benchmark has been independently published, so treat it as directional.
The fastest way to cut cost of vacancy is to hire right, sooner
Kaairo scores candidates on real competencies — not keywords — so you shortlist the right people faster and keep seats from staying empty.