A Guide to Applicant Tracking Software Pricing Models

As an HR manager or recruiter, finding an applicant tracking system that offers the features you need and fits your budget can take substantial time and effort. Analyzing pricing plans is the first step to starting your software search and understanding the various pricing models available, the features commonly provided with each model, and the associated recurring, additional, and hidden costs.

We’ve put together this comprehensive guide to help you compare the pricing plans of top-rated applicant tracking systems. It assists you in determining which plan provides the most value for your software investment. You’ll also learn how software providers license and price their applicant tracking tools.

What are the different types of applicant tracking software pricing models?

Applicant tracking software solutions have different pricing plans or ranges determined by several factors, such as the software type, business size, available features and functionalities, number of users and applicants, vendor reliability, and required integrations. Here are some common applicant tracking software pricing models:

Subscription license

You pay a monthly or annual fee to use the software for a set period of time. Pricing is typically based on the number of user seats per month. The subscription pricing model is commonly used for cloud-based deployments where the system is hosted by the software provider on their servers and can be accessed by your users on compatible devices, such as laptops, smartphones, and tablets, via the internet.

Some common types of subscription pricing options include: 

• Per recruiter: Some ATS vendors charge based on the number of recruiters using the software. It can be either a flat fee per user or a tiered structure where the cost per user decreases as the number of users increases.

• Per applicant: This pricing structure charges based on the number of applicants processed through the system.

• Tiered: Different pricing tiers based on the software features or storage capacity included, with higher tiers offering more advanced functionalities.

• Flat rate: A single, fixed fee for a specified period, regardless of the number of users or applicants.

• Pay as you go: Charges are based on the actual consumption of software resources, such as the number of applicants processed, the volume of data stored, or the frequency with which specific features are used.

Perpetual license

Under this ATS pricing model, you pay a one-time upfront fee for the permanent license to own and use the recruiting solution. The fee can vary based on the number of users. The perpetual pricing model is commonly used for on-premise deployments where the software is hosted and maintained in-house on your own servers.

Free and open-source license

These pricing models are commonly used by businesses with limited budgets and resources or by businesses looking to try out the software before purchasing it.

• Freemium: A basic version of the software is offered for free, with premium features, add-ons, or additional services available for a fee.

• Open source: The software source code is freely available, allowing users to modify and distribute it. While the software is often free to use, you may incur implementation, integration, and maintenance costs.

Common subscription pricing tiers for applicant tracking software

Under the subscription model, per-user pricing is the most commonly seen. You pay a fixed fee for every user seat, and prices increase as the number of user seats increases. Per-user pricing plans are typically of three types, according to analysis by our research team.

• Entry-level plans (1-9 users): Cost up to $177 per month and offer access to standard features. These plans are suitable for small businesses with basic applicant tracking needs, such as job posting and candidate sourcing.

• Mid-tier plans (10-99 users): Cost up to $1,999 per month and offer advanced features such as resume parsing, custom job pipelines, scorecards based on candidate experience, and mass emailing. These plans are suitable for businesses that have outgrown basic applicant tracking tools but don’t require the full range of functionality offered by enterprise-level systems.

• High-end plans (100+ users): Cost up to $2,822 per month and offer a range of advanced applicant tracking capabilities, including unlimited features from entry-level and mid-tier plans, third-party social media and job board integrations, API access, top candidate benchmarking, and custom team analytics. These plans suit larger enterprises with extensive customization and scalability requirements for applicant tracking.

For reference, below is a snapshot of the prices of the most reviewed applicant tracking solutions with subscription pricing plans. These products are taken from the most recent Software Advice FrontRunners for applicant tracking software.*

Note: For each pricing tier—entry level, mid tier, and high end—we calculated the median value based on their respective prices mentioned in the product pricing table above. In this case, the median represents the middle value of the monthly fee for each pricing tier when all the top-rated software solutions are considered. While average pricing may be easily skewed by outliers, the median value gives users an understanding of the midpoint of ranges they're likely to encounter.

What are the upfront and recurring costs associated with applicant tracking software?

Upfront costs are the initial expenses incurred when purchasing or subscribing to software, such as licensing, installation, setup, and training. The graphic below illustrates the primary upfront costs associated with applicant tracking management software.

Recurring costs are the ongoing expenses associated with using software, such as subscription fees and maintenance costs. These costs may be charged monthly or annually and can also include expenses for upgrades or additional user licenses. The graphic below shows the primary recurring costs associated with applicant tracking software.

What are the additional costs associated with applicant tracking software?

These additional costs are common across different software providers and pricing models, so it’s important to include them in your budget.

• Data migration: Transferring your existing applicant and recruitment data to a new system could be time-consuming and expensive. It could lead to additional expenses for data migration services, such as professional consulting, data mapping and validation, hardware or software installation, and data integrity assurance. Therefore, assessing how much the data migration process costs is critical. Also, check whether the data transfer will cause downtime and how much that interruption would cost your small business.

• Training: Depending on the complexity of the software, the cost of training for a new ATS platform can range from zero to several thousand dollars. Employing an implementation professional to educate team members and reduce downtime may be expensive, but it will be helpful in the long term. To help buyers save training expenses, most software providers offer free online resources such as a help desk, a knowledge base, FAQs, and instructional videos.

• Hardware and IT: Costs include upgrading or purchasing equipment to host the new software, updating employee PCs or mobile devices to conform to the system's technical specifications, or even hiring IT professionals to oversee and maintain the new technology. These expenses are in addition to the software purchase cost. Additionally, check whether the software implementation requires extra expenses or infrastructure improvements from the vendor.

• Maintenance and upgrades: Maintenance charges are expenses incurred to keep the applicant tracking system running smoothly and up to date with the latest features. These ongoing costs typically occur regularly and can add up over time. Therefore, check whether your software subscription or licensing fees include maintenance and upgrade services. Alternatively, you may have your in-house staff handle software maintenance and support.

How to find the right pricing plan for applicant tracking software

• Assess your organization's size and hiring volume. If you’re a small to midsize business with a few job openings, an affordable applicant tracking solution that charges on a per-user or per-job-posting basis would fit your budget better. But if your organization is larger and has higher hiring volumes, you may benefit from a scalable solution with flat-rate pricing, which may seem expensive upfront but would provide better value over time as your hiring needs grow.

• Consider the essential features your organization requires. Some applicant tracking platforms offer basic functionalities, such as resume parsing, job posting, and candidate tracking, at a low cost. In contrast, other platforms with advanced features, such as AI-driven analytics, customizable workflows, and HR integration, are priced higher. By identifying which features are nonnegotiable and which are nice to have, you can find a pricing plan that aligns with your budget and simultaneously fulfills your recruitment needs.

• Evaluate the pricing commitment (perpetual or subscription). A perpetual license is an expensive investment, but it’s more cost-effective in the long term. A perpetual license might be a good idea if your applicant tracking needs are defined and you want to purchase software for the long run. However, subscription-based pricing would be more appropriate if you’re looking for a flexible and scalable applicant tracking tool.

Common questions to ask when choosing applicant tracking software

Below are a few questions you should ask software providers when evaluating the pricing plans of the ATS software solutions you’ve shortlisted.

• How scalable is the software pricing? 

Check whether the pricing plans can adapt as your organization grows. For example, find out if adding more users or increasing the number of job postings will significantly increase costs. Scalability is vital because you want a solution that can grow with your organization without exponentially increasing costs. Ensuring the software remains affordable as your needs expand helps you manage your budget effectively and avoid unexpected financial burdens as your hiring demands increase.

• What is the cost of customizations or integrations? 

If your organization requires the ATS to be customized or integrated with other HR tools (such as payroll, CRM, or recruiting software), check the related costs upfront. Customization and integration fees can vary widely and impact your overall budget. This step is crucial because such fees can add up quickly, potentially making the software much more expensive than initially anticipated. Understanding these costs upfront allows you to make a more informed decision and ensures the software can be tailored to your needs without causing financial strain.

• Is there a free trial or demo available? 

A free trial or demo period allows you to test the software before committing to any purchase. Ask the software provider if they offer this option and for how long. A free trial or demo lets you evaluate the software’s usability and effectiveness without any financial risk, ensuring it meets your needs before purchasing. It also allows your team to familiarize themselves with the software, helping you assess whether it integrates well with your existing processes and workflows.