Leadership
Employee Turnover Cost Calculator
Free Employee Turnover Cost Calculator. Estimate how much staff turnover costs your company each year based on headcount, salary, turnover rate, and replacement
This free Employee Turnover Cost Calculator helps HR leaders, managers, and business owners estimate the annual cost of staff turnover. Enter your headcount, average salary, turnover rate, and the cost to replace one employee as a percentage of salary, and instantly see how many people leave each year and what that turnover is costing your organization.
How it's calculated
The calculator uses three simple steps to estimate your annual turnover cost. First it works out how many people leave, then how much each replacement costs, and finally it multiplies the two together.
- Employees leaving per year = number of employees × (turnover rate ÷ 100)
- Cost per replacement = average annual salary × (replacement cost % ÷ 100)
- Total annual turnover cost = employees leaving per year × cost per replacement
For example, with 100 employees, a 15% turnover rate, a $60,000 average salary, and a replacement cost of 33% of salary, 15 employees leave each year, each replacement costs $19,800, and the total annual turnover cost is $297,000.
What is the cost to replace an employee?
Replacement cost includes recruiting, onboarding, training, lost productivity, and the time existing staff spend covering the gap. Studies often estimate it at roughly 30% to 200% of the employee's annual salary, depending on the role's seniority and complexity.
How do I find my turnover rate?
Divide the number of employees who left during the year by your average headcount, then multiply by 100. For example, 15 departures across an average of 100 employees gives a 15% annual turnover rate.
Does this include both voluntary and involuntary turnover?
The calculator works with whatever turnover rate you enter, so you can include voluntary resignations, involuntary terminations, or both. Use the rate that matches the cost you want to estimate.