Employee Turnover Rate Calculator

Headcount and leavers in, turnover rate, annualized rate and the cost of replacing people out

Updated 2026-10-11

Employees at the start of the period

Employees at the end of the period

Employees who left (all separations)

Of those, how many quit (voluntary)

Length of the period

months

Cost to replace one employee (optional)

Turnover rate (12 months): 21.4%
Annualized turnover: 21.4%
Average headcount: 42.00
Voluntary (quits) rate: 14.3%
Involuntary rate: 7.1%
Retention of starting team: 77.5%
Yearly replacement cost: $45,000.00

Turnover rate = people who left ÷ average headcount × 100, the method BLS uses for JOLTS separation rates. Average headcount = (start + end) ÷ 2. Count every separation (quits, layoffs, discharges, retirements) and leave out internal transfers.

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Employee turnover rate is the number of people who left during a period divided by your average headcount, times 100. A business that started the year with 40 employees, ended with 44 and had 9 leave has an average of 42 and a turnover rate of 9 ÷ 42 = 21.4%. Enter a month or a quarter and the calculator also gives the annualized rate, the share who quit and what replacing them costs. Nothing is stored or sent.

The turnover rate formula

Turnover rate = separations ÷ average number of employees × 100, where average employees = (headcount at the start + headcount at the end) ÷ 2. This is the same method the Bureau of Labor Statistics uses for the separation rates in its Job Openings and Labor Turnover Survey (JOLTS): the number of separations during the period divided by employment, times 100.

Count everyone who left the payroll: people who quit, layoffs, firings, retirements and deaths. Leave out internal transfers and people on leave who are still employed. Count part-time and seasonal staff the same way in both the leavers and the headcount, or the rate will be skewed.

Monthly, quarterly and annual turnover

The rate depends on the length of the period, so compare like with like. To turn a monthly rate into a yearly figure, multiply by 12 for a simple run-rate. The compounded figure, 1 − (1 − monthly rate)^12, is lower because the same job can turn over twice in a year: it estimates the share of positions that will see at least one leaver.

Example: 2 leavers in a month with an average of 50 employees is 4% for the month, a 48% annual run-rate, or 38.7% compounded.

Worked examples
Start	End	Left	Period	Rate	Annualized
40	44	9	12 months	21.43%	21.43%
48	52	2	1 month	4.00%	48.00% (38.73% compounded)
120	110	15	3 months	13.04%	52.17% run-rate

Voluntary vs involuntary turnover

Splitting leavers tells you what to fix. Voluntary turnover (quits) points at pay, scheduling, managers or growth. Involuntary turnover (layoffs and discharges) points at hiring and onboarding. Across the US economy, quits were 38.0 million of the 62.8 million total separations in 2025, or 60.6% (BLS JOLTS annual release).

In the default example, 6 of the 9 leavers quit: a 14.3% voluntary rate and a 7.1% involuntary rate.

What turnover costs

Each leaver costs recruiting, the hiring manager's time, training and the weeks a new hire takes to reach full output. Put your own estimate in the cost field: add advertising and agency fees, interview hours at their hourly cost, training hours, and lost output during ramp-up. At $5,000 a person, 9 leavers a year costs $45,000.

Track turnover by team and by tenure: most early leavers go in the first 90 days.
Hold exit interviews, and stay interviews with the people you want to keep.
Compare pay with local job ads every year, and check scheduling and overtime.

Frequently asked questions

How do you calculate employee turnover rate?

Divide the number of employees who left by the average headcount and multiply by 100. Average headcount is (start + end) ÷ 2. 9 leavers with 40 at the start and 44 at the end is 9 ÷ 42 = 21.4%.

What is a good employee turnover rate?

It depends heavily on the industry: restaurants and retail run far higher than offices or government. Compare yourself with your own past years and with your industry's JOLTS rates from BLS.

How do I annualize a monthly turnover rate?

Multiply by 12 for a run-rate. A 4% monthly rate is 48% a year. The compounded figure, 1 − (1 − 0.04)^12 = 38.7%, estimates the share of jobs that see at least one leaver.

Should retirements and layoffs count as turnover?

Yes, total turnover counts every separation. Report quits separately as voluntary turnover so you can see the part you can influence.

What is the difference between turnover rate and retention rate?

Turnover counts leavers against average headcount. Retention is the share of the people you started with who are still there at the end.

Do I count employees hired and then lost in the same period?

Yes. They are separations, so they go in the leavers count, even though they were not in the starting headcount.

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