Turnover Rate Calculator

What is turnover rate?

Turnover rate is the percentage of employees who are replaced by new ones over a specific period out of the total number of employees. This metric can help you understand the stability of your workforce and the effectiveness of your human resource (HR) strategies.

Relevant channels: Human resources, employee management, organizational development.

How to use this turnover rate calculator

To calculate the turnover rate, enter the total number of employees at the beginning of the period, the number of employees at the end of the period, and the number of employees who left during the period. The tool will instantly compute your turnover rate.

Turnover rate formula

An image showing turnover rate formula

Turnover Rate (%)=(Number of Employees Who Left During the Period/Average Number of Employees During the Period​)×100

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

Understanding the turnover rate result

The turnover rate result indicates the proportion of employees who left during the period. Generally a turnover rate of 10% or lower is considered to be ideal.

  • A high turnover rate implies that a high number of employees are leaving, which could signal that your employees might be dissatisfied or that they are finding better opportunities elsewhere.
  • A low turnover rate indicates strong employee retention and satisfaction. It means that you have a stable and motivated workforce.

When to calculate turnover rate

Here are some situations where you should calculate your turnover rate:

  • During quarterly or annual reviews to assess employee retention
  • After significant organizational changes, such as mergers, acquisitions, or restructuring
  • To compare performance against industry benchmarks
  • When evaluating the effectiveness of HR strategies or employee engagement programs
  • While preparing reports for stakeholders or planning workforce budgets

How to calculate Turnover rate with example

Let’s say your company started the year with 150 employees, ended with 140 employees, and 30 employees left during the year, your turnover rate can be calculated as follows:

Turnover Rate (%)=(Number of Employees Who Left During the Period/Average Number of Employees During the Period​)×100

Average Number of Employees During the Period = (150+140)/2 = 145

Turnover Rate=(30/145)×100 = 20.69%

In this example, your turnover rate is approximately 20.7%, indicating that about one-fifth of your workforce left during the year.

How to improve your turnover rate

  • Enhance employee onboarding and training processes
  • Foster a positive workplace culture
  • Offer competitive compensation and benefits
  • Provide opportunities for career growth and development
  • Encourage regular feedback and communication
  • Address employee concerns promptly
  • Recognize and reward employee achievements

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