What this calculator does
Employee turnover rate measures the share of a workforce that left over a given period, whether through resignation, termination or any other separation. It is the standard figure used to track workforce stability and compare it across teams, sites or time periods.
Turnover is calculated against average headcount rather than a single point-in-time count, because headcount itself often changes over the same period being measured. Using the average of the start and end headcount keeps the rate from being distorted by a team that grew or shrank substantially during the period.
The formula
Divide the number of employees who left during the period by the average headcount over that period, then express it as a percentage. The average headcount here is taken as the simple average of the headcount at the start and end of the period.
| Term | Meaning |
|---|---|
| Turnover rate | The percentage of the average workforce that left: (departures ÷ average headcount) × 100. |
| Average headcount | The average of the headcount at the start and end of the period being measured. |
| Departures | The number of employees who left during that period, for any reason being tracked. |
The inputs explained
| Field | What to enter |
|---|---|
| Employees who left during the period | The number of employees who left during the period, however departures are defined for this report. |
| Headcount at start of period | The total headcount at the start of the period. |
| Headcount at end of period | The total headcount at the end of the period. |
When to use it
Reporting monthly or annual turnover
A recurring turnover figure, tracked the same way each period, is the standard input into workforce dashboards and board reporting.
Comparing turnover across teams
Turnover rate normalises for team size, so a small team and a large team can be compared fairly, unlike comparing raw departure counts.
Spotting a retention problem early
A turnover rate that is climbing period over period, even before it looks alarming in absolute numbers, is often the first sign of a retention issue worth investigating.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How turnover rate changes with departures at a fixed average headcount
A stable 80-employee headcount, against a range of departures.
| Employees who left | Turnover rate | Average headcount |
|---|---|---|
| 2 | 2.50% | 80.0 |
| 4 | 5.00% | 80.0 |
| 6 | 7.50% | 80.0 |
| 8 | 10.0% | 80.0 |
| 12 | 15.0% | 80.0 |
| 16 | 20.0% | 80.0 |
How turnover rate changes as headcount grows or shrinks over the period
A fixed 6 departures, against a range of end-of-period headcounts starting from 80.
| Headcount at end of period | Turnover rate | Average headcount |
|---|---|---|
| 60 | 8.57% | 70.0 |
| 70 | 8.00% | 75.0 |
| 80 | 7.50% | 80.0 |
| 90 | 7.06% | 85.0 |
| 100 | 6.67% | 90.0 |
| 120 | 6.00% | 100.0 |
Questions
What is a good turnover rate?
It varies widely by industry, role type and season, so there is no universal benchmark worth quoting. Track your own rate over time and against comparable teams rather than an external average.
Should voluntary and involuntary departures be counted together?
Many organisations report them separately as well as combined, since a high rate of voluntary resignations usually points to a different problem than a high rate of terminations.
Why use average headcount instead of the headcount at the end of the period?
A period where headcount grew or shrank substantially would give a misleading rate if measured against only one end of the period. Averaging the start and end headcount smooths that distortion out.
Does turnover rate account for how long people stayed before leaving?
No, this calculation only counts whether someone left during the period, not their tenure. Average tenure or a survival-style analysis is a separate measure worth tracking alongside turnover rate.
To see the equivalent FTE lost to those departures rather than a headcount figure, use the FTE calculator.