Formulas
- Turnover rate = departures ÷ average headcount × 100
- Average headcount = (start + end) ÷ 2
- Some HR teams use ((hires + departures) ÷ 2) ÷ average headcount.
Example
8 departures in a year, with 100 employees at the start and 98 at the end: average headcount of 99 and turnover of 8.08%. Counting the 6 hires, it is 7.07%.
Why it matters
Replacing an employee often costs a large part of a year’s salary, counting hiring, training and lost productivity. Compare your rate with your industry, which varies a lot (retail and restaurants are much higher than banks).
Frequently asked questions
Should I count people who retire or are let go?
The total rate counts every departure. Many companies also track voluntary turnover (resignations only).
How do I annualize a monthly rate?
Multiply by 12 ÷ the number of months. The calculator does it when the period is not 12 months.
What is a good turnover rate?
It depends on the industry and the country. Look at your own trend over time and at the reasons people give in exit interviews.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.