Teams & projects
Employee turnover calculator
Enter how many people left, your average headcount and the length of the period to get the turnover rate, annualised, with retention alongside.
Average headcount is usually (start count + end count) ÷ 2 for the period. Count only separations you want measured — all leavers, or just voluntary ones.
How the turnover rate is calculated
Turnover rate = employees who left ÷ average headcount × 100. Average headcount is normally the start-of-period count plus the end-of-period count, divided by two. To compare a period shorter than a year with annual benchmarks, the rate is annualised by scaling it up: annualised = period rate × (12 ÷ months). Retention is the mirror image for the period: 100 − turnover rate.
If 12 people left over a year and the average headcount was 150, turnover is 12 ÷ 150 × 100 = 8%. Over twelve months the annualised figure is the same 8%, and retention is 100 − 8 = 92%. The annualising matters for short windows: 5 leavers from 150 in a single quarter is 3.3% for the quarter but 3.3% × (12 ÷ 3) = 13.3% annualised — a very different headline.
| Leavers | Avg headcount | Period | Annualised turnover |
|---|---|---|---|
| 12 | 150 | 12 months | 8.0% |
| 5 | 150 | 3 months | 13.3% |
| 20 | 80 | 12 months | 25.0% |
Reading your rate against benchmarks
Turnover is only meaningful next to a reference. The US Bureau of Labor Statistics regularly reports total annual separations well above 40% across the whole economy, but that figure is inflated by high-churn sectors like retail and hospitality; professional and office roles typically run far lower, often in the low-to-mid teens. Compare yourself against your own industry and, better still, your own trend over time. Split the rate before you act on it: voluntary resignations point to pay, management or growth problems you can fix, while retirements and redundancies tell a different story. A very low rate is not automatically good either — near-zero turnover can mean stagnation and blocked progression. Count separations consistently from period to period, or the trend will mislead you.
Frequently asked questions
What is the formula for employee turnover rate?
Divide the number of employees who left by the average headcount for the period, then multiply by 100. Twelve leavers from an average of 150 staff is a turnover rate of 8%.
How do I annualise turnover for a quarter?
Multiply the period rate by 12 divided by the number of months. A 3.3% quarterly rate becomes 3.3% × (12 ÷ 3) = 13.3% on an annual basis, so short periods compare fairly.
Is a low turnover rate always good?
Not always. Low turnover usually signals stability, but a rate near zero can mean people cannot progress and the team is stagnating. Judge it against your industry and your own trend.