Annual Employee Turnover Cost Calculator
Estimate what employee turnover costs your organization each year from headcount, turnover rate and the cost to replace one person.
How it works
Leavers = headcount × turnover% · Cost per departure = salary × replacement% · Annual cost = leavers × cost per departure
Turnover is expensive in ways that never show up on a single invoice: recruiting fees, interviewing time, onboarding, lost productivity while the seat is empty, and the ramp-up before a replacement is fully effective. Research commonly pegs the total at anywhere from half a salary for junior roles to two times salary for specialized ones. Converting a turnover rate into an annual dollar figure makes retention investments easy to justify.
Worked example
With 200 employees, an 18% turnover rate means about 36 departures a year. If each costs 50% of a $60,000 salary, that is $30,000 per departure, or 36 × $30,000 = $1,080,000 a year — about $5,400 for every employee on the payroll.
Frequently asked questions
What does it really cost to replace an employee?
Estimates range from 50% of annual salary for entry-level roles to 150–200% for managers and specialists. The figure covers recruiting, onboarding, lost productivity and the learning curve of the replacement.
Is some turnover healthy?
Yes. A low level of turnover brings in fresh skills and lets underperformers move on. The concern is high or rising voluntary turnover among strong performers, which this calculator helps you price.
How do I lower turnover cost?
Either reduce the rate — through pay, management and growth opportunities — or reduce the cost per departure with faster hiring and better onboarding. This tool lets you test both levers.
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Educational planning estimate, not accounting, tax or HR advice.