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Employee Turnover Cost Calculator
Work out your employee turnover rate and what each departure really costs: separation, hiring, interviewing, training, the empty seat and the time a new hire takes to get up to speed.
Free to use. No sign-up. Your figures stay in your browser.
Your turnover
Your result
Enter your figures and select Calculate. Your result appears here.
How to use this calculator
- Optionally enter how many employees left and your headcount at the start and end of the period, to get your turnover rate.
- Enter the costs of one typical departure. Leave blank anything that doesn't apply.
- Enter how many departures to cost, or leave it blank to use the number who left.
- Select Calculate.
How it works
Turnover rate
Turnover rate = employees who left ÷ average headcount × 100
Average headcount = (employees at start + employees at end) ÷ 2
This mirrors how the Bureau of Labor Statistics calculates the separations rate in its JOLTS survey: separations divided by employment, multiplied by 100.
Cost per departure
Interviewing = interviewing hours × cost per hour
Training = training hours × cost per hour + materials
Vacancy = weeks vacant × weekly vacancy cost
Ramp-up = weeks to full productivity × new hire's weekly pay × productivity gap %
Total = cost per departure × number of departures
There's no official government figure for the cost of turnover, and published estimates vary widely. That's why this calculator uses only the figures you enter and shows how each part adds up.
Worked example
A 40-person business ended the year with 44 employees after 6 people left. For a typical departure it spends $500 on separation and $2,500 on hiring, 20 interviewing hours at $45, 40 training hours at $40 plus $300 of materials, 4 vacant weeks at $600 a week, and 12 ramp-up weeks for a new hire paid $1,050 a week who works at about half capacity.
| Step | Result |
|---|---|
| Turnover rate: 6 ÷ ((40 + 44) ÷ 2) × 100 | 14.29% |
| Separation + hiring | $3,000.00 |
| Interviewing: 20 × $45 | $900.00 |
| Training: 40 × $40 + $300 | $1,900.00 |
| Vacancy: 4 × $600 | $2,400.00 |
| Ramp-up: 12 × $1,050 × 50% | $6,300.00 |
| Cost per departure | $14,500.00 |
| Total for 6 departures | $87,000.00 |
Frequently asked questions
How do I calculate employee turnover rate?
Divide the number of employees who left during a period by your average number of employees, then multiply by 100. Average headcount is usually the number at the start plus the number at the end, divided by 2. Six departures with an average of 42 employees is a 14.29% turnover rate.
Who counts as leaving?
Total turnover usually includes everyone who left the payroll: quits, layoffs and discharges, and other separations such as retirements. That matches how the Bureau of Labor Statistics counts total separations. You can also run the calculation for voluntary quits only.
Why doesn't this calculator use a standard cost, like a percentage of salary?
Because there's no official figure, and published estimates vary widely depending on the role and the method. Using your own costs gives a number you can defend and act on. If you enter the role's salary, the calculator shows your result as a percentage of it.
How can I compare my turnover rate with other employers?
The Bureau of Labor Statistics publishes national, industry and regional turnover rates every month in its Job Openings and Labor Turnover Survey (JOLTS). Its figures are monthly rates, so compare them with a monthly rate of your own, or add up the monthly rates to compare with a yearly figure.
What should I count as vacancy cost?
Costs that exist only because the job is empty: overtime paid to colleagues covering the work, temporary staff, or revenue lost. Don't count the departed employee's salary, because you're not paying it while the job is vacant.
Sources
There's no official government formula for the cost of turnover. The turnover rate follows the BLS method for separations rates, and every cost comes from your own figures.
- BLS Job Openings and Labor Turnover Survey (JOLTS): technical note. BLS computes the separations rate by dividing separations by employment and multiplying by 100. Separations include quits, layoffs and discharges, and other separations such as retirements.
- BLS JOLTS home page. National and industry turnover rates, updated monthly, if you want to compare your rate.
Last reviewed: . This tool is not an official government calculator, and it is not tax, legal or financial advice. See the resources disclaimer.
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