From data to report in one minute or less. Ajelix BI is launched! 🚀 Get started for free.

Free Employee Turnover Rate Calculator Online

free employee turnover rate online banner

The employee turnover rate calculator can help you measure how frequently employees leave a company and are replaced by new hires. This HR KPI is expressed as a percentage over a specific period, typically a year.

Calculate Employee Turnover Rate

Employee turnover rate formula

Employee Turnover Rate = Number of employees separated (period) / Average number of employees (period) x 100


  • Number of employees separated (period): This includes both voluntary and involuntary departures during the chosen timeframe (e.g., a month, quarter, or year).
  • Average number of employees (period): This represents the average number of employees working throughout the same timeframe. It’s often calculated by averaging the number of employees at the beginning and end of the period.

By multiplying this fraction by 100, you get the employee turnover rate as a percentage.

Struggling with manual calculations?
Setup automatic calculations on digital dashboard and track your data regularly. Fast registration and easy setup guaranteed.

Learn more

How to calculate the turnover rate?

Time needed: 10 minutes

Here’s how to calculate the employee turnover rate step-by-step with an example

  1. Define the Time Period

    Choose the timeframe for which you want to calculate the turnover rate. This is typically a year (annual turnover rate) but can be a month, quarter, or any specific period depending on your needs.

  2. Identify Departures

    Find the total number of employees who left the company during the chosen period. This includes both voluntary departures (resignations) and involuntary separations (terminations, layoffs).

  3. Calculate The Average Number of Employees

    Here’s how to determine the average number of employees: Add the number of employees at the beginning of the period and the number of employees at the end of the period, then divide by two. Average Employees = (Beginning Employees + Ending Employees) / 2 *

  4. Calculate Turnover Rate

    Once you have the number of departures and the average number of employees, apply the formula: Turnover Rate = (Number of Departures) / (Average Number of Employees) x 100

  5. Interpret the Result

    The turnover rate will be a percentage. A higher percentage indicates a higher rate of employee departures. Industry benchmarks and company goals will help you determine if your turnover rate is acceptable or requires attention.


Let’s say a company starts a year with 100 employees and ends the year with 110 employees. During the year, a total of 15 employees leave the company (voluntary and involuntary).

  1. Time Period: One Year
  2. Departures: 15 Employees
  3. Average Employees: (100 Employees + 110 Employees) / 2 = 105 Employees
  4. Turnover Rate: (15 Employees) / (105 Employees) x 100 = 14.29%

Therefore, this company has an annual employee turnover rate of approximately 14.29%.

Why measure the Turnover rate?

Businesses calculate employee turnover rate for several reasons:

  • Cost Analysis: Employee turnover is expensive. It costs money to recruit, hire, and train new employees. By tracking turnover rate, businesses can estimate these costs and identify areas for improvement in retention strategies. High turnover can also negatively impact customer satisfaction and brand reputation.
  • Retention Strategies: A high turnover rate can indicate employee dissatisfaction with company culture, compensation, or work-life balance. Businesses use turnover rate to assess employee morale and implement strategies to retain top talent.
  • Productivity Impact: Frequent turnover disrupts workflows and reduces productivity as new hires take time to get up to speed. Monitoring turnover rate helps businesses gauge its impact and take steps to minimize disruption, such as improving onboarding processes or knowledge sharing practices.
  • Workforce Planning: Turnover rate helps businesses forecast future staffing needs. By understanding how many employees typically leave each year, businesses can plan for recruitment and training activities accordingly. This ensures they have a sufficient workforce to meet business needs.
  • Benchmarking: Turnover rate allows businesses to compare their employee retention rates to industry standards or competitors. This helps them identify areas where they might be lagging behind and implement best practices to improve their standing.

Other calculators

Free net profit margin calculator online by ajelix banner

Free Net Profit Margin Calculator Online

May 16, 2024
The Net Profit Margin Calculator is a financial tool that shows what portion of your sales revenu…
Free liquid net worth calculator online banner

Free Liquid Net Worth Calculator Online

May 9, 2024
A liquid net worth calculator can help you measure your financial flexibility in the short term. …
Free Customer Retention Rate Calculator online banner

Free Customer Retention Rate Calculator Online

May 7, 2024
The customer retention rate calculator can help you tell what percentage of your customers stay w…
Free profitability index calculator online banner

Free Profitability Index Calculator Online

May 2, 2024
The profitability index (PI) calculator is a financial tool used to judge the attractiveness of a…
Free revenue per employee calculator online - banner

Free Revenue Per Employee Calculator Online

April 30, 2024
Revenue per employee (RPE) is a metric that measures how much revenue each employee generates for…
free Customer Acquisition Cost Calculator online banner

Free Customer Acquisition Cost Calculator Online

April 25, 2024
Customer Acquisition Cost Calculator, or CAC, is a metric that tells a business how much it costs…

Setup and monitor your KPIs regularly using Ajelix BI

Ad hoc financial analysis report example from ajelix bi portal

You might also like

Ajelix BI version 2 is launched Ajelix news banner

Ajelix BI Version 2 Is Live: More Analytics & More Power

May 10, 2024
Unleash the true power of your data! 💥 Ajelix, the dynamic AI-powered BI platform built for SMBs,…
generative AI for data analytics banner blog article by ajelix

Generative AI For Data Analytics: What You’re Missing Out

April 18, 2024
Organizations across all industries are turning to data analytics to inform strategic decisions, …
Hoe to calculate business growth rate with examples and formula banner by ajelix

How to Calculate Business Growth Rate? Formula & Examples

April 16, 2024
Whether you’re a seasoned entrepreneur or just starting, measuring progress is vital to ide…
How to calculate average revenue per user formula & meaning example banner

Calculate Average Revenue Per User: ARPU Formula & Meaning

April 11, 2024
The metrics are king, there’s no doubt about it. They tell the story of your company’…
How to calculate revenue growth in Excel with examples and formulas banner by ajelix

How To Calculate Revenue Growth Rate: Formula & Examples

April 9, 2024
Revenue growth rate is a performance indicator, that helps understand if your sales efforts are y…
How to analyze data in Excel spreadsheet banner by author

How To Analyze Data In Excel Spreadsheet

April 4, 2024
Excel is the workhorse of data analysis in countless businesses. It can unlock valuable insights …