Attrition Rate Calculator
Turnover Rate Calculator
How to determine employee turnover rate correctly? Our free employee turnover rate calculator helps you measure staff attrition rate at your company, by calculating the percentage of employees who leave your organisation. Determine turnover annually, quarterly, or monthly to identify trends and develop effective retention strategies.
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Turnover Rate Calculator Results
Annual Turnover Rate
Industry Comparison
Note: Industry averages vary significantly. Hospitality, retail, and technology typically have higher turnover rates, while government, construction, and manufacturing tend to have lower rates.
Calculation Formula
Formula: Employees Left ÷ ((Start + End) ÷ 2) × 100
Calculation: 7 ÷ ((100 + 95) ÷ 2) × 100 = 7 ÷ 0.0 × 100 = 0.0%
Method: Start and end calculations (commonly used for annual/quarterly periods)
Step-by-Step Guide
How to calculate employee turnover rate?
Calculate your organisation's employee turnover rate and get actionable insights in 4 simple steps:
Select Calculation Method
Choose between start/end calculations (input employees at beginning and end of period) or average calculations (input average employees during period) based on your available data.
Select Time Period
Choose annual (most common for benchmarking), quarterly (for tracking trends), or monthly (for detailed insights) based on your reporting needs.
Enter Your Data
Input employee counts and departures for your selected period. Include all payroll employees and those on temporary leave, but exclude agency temporary workers and internal transfers.
Analyze Results
Review your turnover rate, industry comparison, and recommended actions to improve employee retention strategies.
Frequently asked questions
Visit our full FAQ page or get in touch with Frederic, our Customer Support Officer and Founder of PayrollRabbit.
- Employee turnover rate is the percentage of employees who leave an organisation during a specific time period, typically measured annually, but also quarterly or monthly. It includes both voluntary departures (resignations, retirements) and involuntary separations (terminations, layoffs). A high turnover rate indicates many people are leaving the company, while a low rate suggests employees tend to stay longer. Understanding your turnover rate is a crucial part of your company health.
- The Employee Turnover Rate Calculator is a free tool developed by PayrollRabbit to help you measure attrition rate at your company by calculating the percentage of employees who leave during a specific period. It offers two calculation methods: average employees calculations during the period (when detailed data available) and start/end calculations (commonly used for annual calculations), along with industry comparisons and actionable recommendations.
- Employee turnover rate can be calculated using two methods: Method 1 uses (Employees Left ÷ Average Employees) × 100, while Method 2 uses (Employees Left ÷ ((Start + End Employees) ÷ 2)) × 100. For example, if 15 employees left from an average of 100 employees, the rate would be 15%. The calculation excludes internal transfers, promotions, and employees on temporary leave to ensure accuracy.
- A good employee turnover rate varies by industry, but generally: 5% or lower is very low turnover (excellent retention), 5-10% is low turnover (good retention), 10-15% is moderate turnover (acceptable), 15-25% is high turnover (may need attention), and above 25% is very high turnover (requires immediate action). The average across industries is approximately 10.6%. Industries like professional services and technology have higher rates (12-13%), while government and manufacturing have lower rates (8-9%).
- For employee counts, include all employees on payroll and those on temporary layoff, leave of absence, or furlough. Exclude temporary workers on separate agency payroll. For employees who left, include voluntary resignations, involuntary terminations (dismissals, layoffs), and retirements. Exclude internal transfers/promotions, employees on temporary layoff, furlough, or leave of absence. Note: Some organisations exclude retirements when measuring competitive retention.
- Tracking employee turnover rate is crucial because it helps identify retention issues early, measures the effectiveness of HR policies and management practices, estimates recruitment and training costs (turnover costs U.S. companies nearly $900 billion annually), compares performance against industry benchmarks, and guides strategic workforce planning. High turnover can indicate problems with compensation, management, workplace culture, or career development opportunities, while consistent tracking helps develop targeted retention strategies.
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