Employee Turnover Calculation

Number of Employees who left
Beginning Number of Employees
Ending Number of Employees
Annual Turnover Rate (%)

Employee turnover calculator

An employee turnover calculator is a valuable tool for organizations to assess and manage their workforce dynamics. It helps businesses quantify the rate at which employees leave the organization over a specified time period, providing essential insights for HR professionals, managers, and decision-makers. By calculating turnover, organizations can identify potential challenges, assess the effectiveness of retention strategies, and make informed decisions regarding talent management.

What is an employee turnover calculator?

An employee turnover calculation is a tool or software application designed to automate the process of calculating employee turnover rates within an organization. It helps HR professionals, managers, and analysts quickly and accurately determine turnover metrics based on the data they input.

Why to calculate employee turnover rate?

Employee turnover rate calculation is done because:

  1. Assessing workforce stability: Turnover rate calculations help organizations understand the stability of their workforce. High turnover rates can indicate that employees are leaving the organization at a concerning rate, potentially disrupting business operations and impacting productivity.
  2. Identifying trends: By tracking turnover over time, organizations can identify trends in employee departures. Are there certain months or seasons when turnover is higher? Are specific departments or job roles experiencing higher turnover? Recognizing these patterns can lead to targeted interventions and improvements.
  3. Measuring HR effectiveness: Turnover rates serve as a measure of the effectiveness of an organization's human resources (HR) management. High turnover may indicate issues with recruitment, retention, or employee satisfaction that need to be addressed.
  4. Cost management: Employee turnover is costly for organizations. Calculating turnover allows businesses to estimate the financial impact of replacing departing employees, including recruitment costs, training expenses, and potential productivity losses during the transition period.
  5. Retention strategy evaluation: Organizations can assess the effectiveness of their retention strategies by monitoring turnover rates. If turnover remains high despite efforts to improve retention, it may be necessary to reevaluate and adjust these strategies.
  6. Benchmarking: Comparing turnover rates with industry benchmarks or competitors' rates provides context and helps organizations understand how they stack up against their peers. This information can guide efforts to improve retention and recruitment strategies.
  7. Workforce planning: Calculating turnover is crucial for workforce planning. Organizations can anticipate staffing needs more effectively by accounting for expected departures and ensuring they have a talent pipeline in place.
  8. Improving company culture: High turnover rates may be indicative of underlying issues within an organization's culture or work environment. Calculations can serve as a starting point for addressing these concerns and fostering a positive workplace culture.
  9. Legal compliance: In some regions, labor laws and regulations may require organizations to report turnover rates or related data. Calculations help ensure compliance with legal requirements.
  10. Data-driven decision-making: Turnover rate data provides a foundation for data-driven decision-making. Organizations can use this information to set targets for reducing turnover, allocate resources more effectively, and make informed choices about hiring and retention strategies.

Why use an employee turnover calculator?

Cost of employee turnover calculator is used because:

  1. Accuracy: Employee turnover calculations involve multiple variables, such as the number of employees who left, the time period, and the average workforce size. An employee turnover calculator automates these calculations, reducing the risk of errors associated with manual calculations.
  2. Efficiency: Calculating turnover rates manually can be time-consuming, especially for organizations with a large workforce or when assessing turnover over multiple time periods. A calculator streamlines the process, allowing HR professionals to focus on analyzing results and taking action.
  3. Consistency: Using a turnover calculator ensures that turnover rates are calculated consistently across different time periods and departments within an organization. This consistency is crucial for meaningful comparisons and trend analysis.
  4. Flexibility: Many turnover calculators allow users to select different time frames, making it easy to calculate turnover rates on a monthly, quarterly, or annual basis. This flexibility accommodates various reporting and analysis needs.
  5. Data Visualization: Some calculators provide visual representations of turnover data, such as charts or graphs, which can enhance understanding and communication of results among stakeholders.

How to calculate employee turnover?

Here is how to calculate employee turnover rate:

  1. Determine the time period

In employee turnover calculation, decide on the time period for which you want to calculate turnover. It could be monthly, quarterly, or annually, depending on your organization's needs and reporting requirements.

  1. Count the number of employees who left 

During the chosen time period, count the number of employees who left your organization for any reason. Include all types of departures, such as resignations, retirements, terminations, and any other forms of employee exits.

  1. Calculate the average number of employees

To calculate the average number of employees during the selected time period, add the number of employees at the beginning and end of that period and then divide by 2:

Average Number of Employees= (Number of Employees at the Beginning+Number of Employees at the End)/ 2 

  1. Calculate the turnover rate 

Now, use the following formula to calculate the turnover rate as a percentage:

Annual employee turnover rate%= (Employee left the company/ Average employee turnover) x 100

  1. Interpret the result

The result you get from employee turnover calculation represents your employee turnover rate for the specified time period. A higher turnover rate suggests that a larger proportion of your workforce is leaving the organization, which can have various implications for your HR and management practices.

How does an employee turnover calculator work?

Employee turnover rate calculator work as:

  1. Data input
  • You start by providing specific data related to employee departures and your workforce for a selected time period. The data you input may include:
  • The number of employees who left (e.g., resigned, retired, terminated) during that time period.
  • The average number of employees in your organization during the same time frame.
  • The time period you're interested in (e.g., monthly, quarterly, annually).
  1. Calculation

Once you've entered the necessary data, the turnover calculator uses a predefined formula to perform the calculations. 

  1. Results

After performing the calculations, the calculator provides you with the turnover rate for the specified time period. This rate indicates the percentage of employees who left the organization during that period relative to the average workforce size.

  1. Additional features

Depending on the calculator's sophistication, it may offer various additional features and options:

  • Time period selection: The calculator allows you to select different time frames (e.g., monthly, quarterly, annually) to calculate turnover rates.
  • Benchmarking: Some calculators provide industry benchmarks or allow you to compare your organization's turnover rates with industry averages.
  • Data visualization: Advanced calculators may generate visual representations (e.g., charts, graphs) to help you better understand and communicate the turnover data.
  • Scenario analysis: Certain calculators enable "what-if" analyses, allowing you to explore different turnover scenarios and their potential impact.
  • Historical tracking: Some calculators store past turnover data, enabling you to track trends over time.
  • Export and reporting: You may have the option to export the calculated turnover data for further analysis or reporting.


The formula for calculating employee turnover is:

Annual employee turnover rate%= (Employee left the company/ Average employee turnover) x 100


What is employee turnover cost calculator?

An employee turnover cost calculator is a tool that helps organizations estimate the financial impact of employee turnover. It calculates the direct and indirect costs associated with losing and replacing employees, including recruitment, training, lost productivity, and potential business disruption. This tool helps businesses make informed decisions to manage turnover effectively and reduce associated expenses.

How do you calculate employee turnover?

To calculate employee turnover, use this formula:

\[ \text{Turnover Rate} = \left( \frac{\text{Number of Employees Who Left}}{\text{Average Number of Employees}} \right) \times 100 \]

1. Count the number of employees who left.

2. Calculate the average number of employees during the same time period.

3. Apply the formula to determine the turnover rate as a percentage.

How to calculate employee turnover in excel?

Calculating employee turnover rate in excel:

  1. Create a new Excel spreadsheet.
  2. In one column, list the names or identifiers of employees who left the organization during the selected time period. For each departing employee, enter one row of data.
  3. In another column, count the number of rows containing departing employees. You can use the COUNTA’ function or manually count the rows.
  4. In a new cell, calculate the average number of employees during the same time period. To do this, add the number of employees at the beginning and end of the period and then divide by 2.

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