Employee Turnover Rate Calculator

How it is calculated

Turnover is the share of the average workforce that left during the period: turnover rate = separations ÷ avg_headcount × 100. The tool also shows retention rate = 100 − turnover rate. Separations are everyone who left in the period, whether they resigned, were dismissed or retired. Average headcount is normally the starting and ending headcount added together and halved, for the same period. The rate covers whatever period the separations cover, so a figure for three months is not an annual rate. To annualize a quarterly figure, multiply it by 4, which assumes the pace continues. Average headcount must be above zero, separations cannot be negative, and separations cannot exceed the average headcount: such inputs show no result, so the rate never goes above 100%. Zero separations is allowed. The retention line is simply 100 minus the turnover rate, not a count of employees who stayed the whole period.

Common mistakes

• Dividing by the headcount at the end of the period instead of the average. In a growing company this understates turnover, and in a shrinking one it overstates it.
• Comparing a quarterly rate with a yearly benchmark without annualizing. The two cover different periods and cannot be compared directly.
• Counting transfers within the company, or contractors, as separations. They are normally excluded unless you track them on purpose.
• Reading the retention line as the share of people who stayed all year. It is only 100 minus turnover, so one position that turned over twice counts twice.
• Entering more separations than the average headcount, for example when a small team turned over several times in a year. The tool shows no result; use a longer-period average headcount or split the period.