Temp-to-Hire Conversion Fee Calculator
Estimate the buyout fee when a client hires your temp, including the declining-fee credit for hours already worked.
Temp-to-Hire Conversion Fee
Conversion Fee Due
$7,800
effective 15% of salary
Many staffing contracts reduce the buyout fee as the temp logs hours, and waive it entirely past a threshold. Adjust the schedule to match your agreement. This is an estimate, not contract terms.
How Temp-to-Hire Buyout Fees Work
When a client converts your temporary worker to a permanent employee, the conversion fee compensates you for sourcing and for the placement margin you give up. Many contracts scale the fee down as the worker logs hours, so the client pays less the longer they've already been billed.
Effective Fee = Salary × Fee% × (1 − Hours Worked ÷ Hours to Waiver)FreshStaff tracks the whole temp-to-hire lifecycle, so hours worked, conversion status, and the fee are all in one system.
Frequently Asked Questions
How much is a temp-to-hire conversion fee?
Conversion (buyout) fees are typically a percentage of the worker's annual salary, often 10–20%, and many agreements reduce that percentage as the temp logs hours, waiving it entirely past a set threshold.
Do conversion fees decline the longer a temp works?
Frequently, yes. A common structure credits the client for hours already billed as a temp and waives the buyout entirely after a threshold such as 1,000–1,500 hours, since the agency has already earned margin on those hours.
How is the conversion fee calculated?
Multiply the annual salary by the base fee percentage, then apply any earned-hours credit. This tool models a linear credit: effective fee = base fee × (1 − hours worked ÷ hours-to-waiver).
Run Temp-to-Hire End to End
Track hours, conversions, and fees in one platform, at $0 recruiter seats.