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Employee Turnover Rate Calculator

Turnover formulas for monthly, annual, voluntary, and first-year rates, plus retention rate, a cost-of-turnover worksheet, and a 12-month tracker.

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What you get

  • Formulas for monthly, annual, and annualized turnover with fully worked examples
  • Voluntary vs involuntary, regrettable, and first-year turnover calculations
  • The retention rate formula, and why it is not simply 100% minus turnover
  • A cost-of-turnover worksheet that builds the cost from your own numbers
  • A 12-month tracker to log headcount and separations

Template preview

A preview of the structure. Download the PDF or CSV for the complete, ready-to-use version.

Inputs

Headcount at start of period
Headcount at end of period
Total separations in the period— everyone who left, however they left
Voluntary separations— resignations and retirements

Turnover formulas with a worked example

Example month: 200 employees on the 1st, 196 on the 31st, 6 separations (4 voluntary, 2 involuntary; 1 of the voluntary leavers was regrettable).

MetricFormulaExample inputsResult
Average headcount(Start headcount + end headcount) / 2(200 + 196) / 2198
Monthly turnover rateSeparations / average headcount x 1006 / 198 x 1003.03%
Voluntary turnover rateVoluntary separations / average headcount x 1004 / 198 x 1002.02%
Involuntary turnover rateInvoluntary separations / average headcount x 1002 / 198 x 1001.01%

Annual, first-year, and retention calculations

MetricFormulaExample inputsResult
Annual turnover rateTotal separations in year / average of the 12 monthly average headcounts x 10058 separations; average headcount 20558 / 205 x 100 = 28.29%
Annualized rate (partial year)Year-to-date turnover rate x (12 / months elapsed)15 separations, average headcount 200, after 3 months: 7.5%7.5% x (12 / 3) = 30.0%
First-year turnoverHires who left within 12 months of start / total hires in the cohort x 10040 hires; 11 left within their first year11 / 40 x 100 = 27.5%
Retention rateEmployees at start who are still employed at end / employees at start x 100200 at start; 162 of them still employed at year end162 / 200 x 100 = 81.0%

Retention and turnover don't add to 100%. Retention only looks at the people you started the year with; new hires who join and leave in the same year raise turnover but never touch the retention rate. In the examples above, annual turnover is 28.29% and retention is 81.0%, and both are correct.

Monthly turnover tracker

Log the numbers at month end. Average headcount = (start + end) / 2. Monthly rate = separations / average headcount x 100. For the annual rate, add the 12 separation counts and divide by the average of the 12 average-headcount figures.

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How to use this template

  1. 1

    Agree the definitions first

    Decide who counts as a separation (usually all regular employees who leave; many teams exclude interns, seasonal staff, and internal transfers) and write it down so the number means the same thing every month.

  2. 2

    Log headcount and separations monthly

    Record headcount on the first and last day of each month and every separation with its type: voluntary, involuntary, retirement, or end of contract.

  3. 3

    Calculate the monthly rate, then the annual

    Monthly turnover = separations / average headcount x 100. For the year, divide total separations by the average of the 12 monthly headcounts.

  4. 4

    Split the number before you report it

    A single turnover figure hides the story. Report voluntary, involuntary, regrettable, and first-year turnover separately so leaders can see where the problem is.

  5. 5

    Price it with your own numbers

    Use the cost worksheet for one or two recently vacated roles, with real recruiting spend and real ramp time, rather than quoting a generic industry percentage.

Frequently asked questions

How do you calculate employee turnover rate?

Divide the number of separations in the period by the average headcount and multiply by 100. Average headcount is (start headcount + end headcount) / 2. With 6 separations and an average of 198 employees, monthly turnover is 6 / 198 x 100 = 3.03%.

How do you calculate annual turnover rate?

Add the separations for all 12 months and divide by the average headcount for the year (the average of the 12 monthly averages), then multiply by 100. If you only have part of the year, annualize it: year-to-date rate x (12 / months elapsed).

What is the difference between turnover rate and retention rate?

Turnover counts everyone who left relative to average headcount, including new hires who joined and left in the same year. Retention looks only at the people employed at the start of the period and asks what share of them are still there at the end. The two rarely add up to 100%.

What is regrettable turnover?

Regrettable turnover is voluntary departures of people you would have wanted to keep and would rehire, typically strong performers or people in hard-to-fill roles. Decide the criteria in advance (for example, a recent rating of meets or exceeds and eligible for rehire) so managers don't label it after the fact.

How much does employee turnover cost?

It varies too much by role for a single percentage to be reliable. Build it up from separation admin, vacancy cover, recruiting spend and time, onboarding, and ramp-up productivity loss. In the worksheet example, a $70,000 role costs $16,665 to replace, or 23.8% of salary.

What is a good employee turnover rate?

It depends heavily on industry: hospitality and retail run far higher than professional services or government. Your most useful benchmark is your own trend by department and tenure band, and the split between voluntary, involuntary, and regrettable turnover.