Employee turnover is costly: replacing an employee often costs a third to a half of their annual salary in recruiting, training and lost productivity. Tracking voluntary turnover separately shows how many people chose to leave.
How to use the Turnover Rate Calculator
- Average headcount
- Employees at the start
- Employees at the end
- Average number of employees
- Employees who left
- Of whom left voluntarily
- Replacement cost per employee
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter headcount at the start and end of the period (or the average), the number of employees who left, and how many left voluntarily.
Tips
- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.
Common mistakes to avoid
- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.
Inputs explained
| Field | What to enter |
|---|---|
| Average headcount | Choose one: Calculate from start and end, I know the average |
| Employees at the start | A number |
| Employees at the end | A number |
| Average number of employees | A number |
| Employees who left | A number |
| Of whom left voluntarily | A number |
| Replacement cost per employee | Amount in your currency |
What each result means
- Turnover rate = [Employees who left]÷[Average headcount]×100
- Voluntary turnover = [Of whom left voluntarily]÷[Average headcount]×100
- Involuntary turnover = ([Employees who left] – [Of whom left voluntarily])÷[Average headcount]×100
- Estimated cost of turnover = [Employees who left]×[Replacement cost per employee]
Example values
How the main result changes when Employees at the start changes and everything else stays at the example values above:
| Employees at the start | Turnover rate (%) |
|---|---|
| 100 | 15.48 |
| 150 | 13.33 |
| 200 | 11.71 |
| 250 | 10.43 |
| 300 | 9.41 |
| 400 | 7.87 |
Formula
Average employees = (start + end) ÷ 2Turnover rate = separations ÷ average employees × 100Annualised = monthly rate × 12 (approximately)Worked example
Inputs — Average headcount: Calculate from start and end; Employees at the start: 200; Employees at the end: 210; Average number of employees: 205; Employees who left: 24; Of whom left voluntarily: 18; Replacement cost per employee: $15,000.
Results — Average headcount = 205; Turnover rate = 11.71 %; Voluntary turnover = 8.78 %; Involuntary turnover = 2.93 %; Estimated cost of turnover = $360,000.00.
Frequently asked questions
What is a good employee turnover rate?
Around 10% a year is often seen as healthy; it varies by industry.
What is the difference between turnover and attrition?
Turnover counts leavers who are replaced; attrition often refers to roles left unfilled.
How much does turnover cost?
Often 33–50% of the employee's annual salary.
What formula does the Turnover Rate Calculator use?
Average employees = (start + end) ÷ 2.