Turnover Rate Calculator
Table of contents
What is turnover rate, and what does it tell you?How to use the turnover rate calculator?How to calculate turnover rate?Check out these other tools helpful for business!FAQsIf you need to calculate your company's employee turnover rate quickly, you're in the right place — our turnover rate calculator will do it for you. Use it to figure out the value of this important HR metric, and read on if you want to find out more about it. In the article, we will describe how to calculate the turnover rate, explain what the turnover rate is in the first place, and show you the turnover rate formula.
What is turnover rate, and what does it tell you?
Let's start from the beginning. Turnover rate is a metric used by Human Resources (HR), used to monitor the value of various HR initiatives undertaken by a company. Turnover is, in essence, the act of replacing one employee with another. Employee turnover rate is a metric that tells you the percentage of staff members who left the company over a period of time. It's typically calculated on a monthly or yearly basis, but in practice, you can use whatever frequency fits you best.
Importantly, when calculating employee turnover rate, you usually don't take into account intercompany movement — the metric concerns members of staff who leave the company for good, so promotions and transfers should not be counted. Similarly, if an employee starts a longterm but temporary leave, for example, maternity leave or a sabbatical, they should not be counted, as they don't truly leave the company. When calculating the staff turnover rate, the workers who leave are those who resign, retire or are laid off.
So, why is it important? In simplest terms — you most likely don't want your staff to leave the company in groups. The employee turnover rate allows us to assess the state of a company from the team's perspective and act when something starts going wrong.
As for the specific values of the employee turnover rate, it's not really possible to specify when it universally gets bad. The values vary from industry to industry. According to
, these are the turnover rates for some sectors (ranked highest to lowest):Sector  TR 

Tech (software)  13.2% 
Retail  13% 
Media & Entertainment  11.4% 
Goverment/Edu/Nonprofit  11.2% 
Financial services & insurance  10.8% 
Healthcare & pharmaceutical  9.4% 
How to use the turnover rate calculator?
To calculate your company's turnover rate, follow these short instructions:
 Pick whether you need to calculate the average number of active team members.
 If you already know the average number, input it into the appropriate field.
 If you have yet to calculate the average number of employees, the employee turnover rate calculator can do it for you. In that case, input the number of active employees your company had at the beginning of the given period and the number at the end of that period.
 Input the number of employees who left over the given time period.
 The calculator will use the provided information to figure out the turnover rate.
How to calculate turnover rate?
Now that you know what the turnover rate is, let's move on and learn how to calculate it. Luckily, the turnover rate formula is easy, so calculating it on your own should not be too complicated.
If you want to do the calculations yourself, use the following turnover rate formula:
turnover rate = (employees who left / average number of employees) × 100%
If we want to calculate the average number of staff members at the same time, the turnover rate formula becomes a little bit more complicated:
turnover rate = [employees who left / ((employees at the beginning of given period + employees at the end of given period) / 2)] × 100%
Now that you know how to calculate the turnover rate, let's go through a short example. Let's say over the last year 9 people left a company that had an average of 91 employees over that time. In that case:
TR = (9 / 91) × 100 = 0.989 × 100% = 9.89%
Check out these other tools helpful for business!
HR metrics are important, but they're not the only values a businessman needs. Feel free to use our other finance and business calculators, for example:

Receivables turnover calculator, which will tell you the activity ratio that shows how efficient a company is in providing credit to its customers;

Profit margin calculator, which tells you the percentage of the revenue that remains after the deduction of all expenses, such as taxes, interest, etc.; and

Contribution margin calculator, which gives you the difference between the sales revenue and the variable costs of the product.
How do I calculate turnover rate?
To calculate the turnover rate, you should follow these steps:

Add up how many employees left the company during a specific period (like a year).
Say 40.

Calculate the average number of employees during that period. You can find this by adding the number of employees at the start and end of the period and dividing by 2.
(120 + 80)/2 = 100

Divide the number of employees who left by the average number of employees, then multiply by 100 to get the percentage.
40/100 × 100

This percentage is your turnover rate:
40%
What is a good turnover rate?
A good turnover rate varies by industry, but a lower rate is generally seen as better. A turnover rate of around 10% or less is often considered good. This indicates that employees tend to stay with the company, suggesting a positive work environment and good employee satisfaction.
Is a 15% turnover rate bad?
A 15% turnover rate isn't necessarily bad, but it depends on the industry and company norms. Some sectors, like retail or hospitality, often have higher turnover rates. In these fields, 15% might be average or even low. However, in industries with typically lower turnover, like finance or technology, 15% could be considered high.
What is the average turnover rate for 2022?
In 2022, the average turnover rate across various industries was approximately 47%. The rate varied significantly between sectors, with Leisure and Hospitality at the high end with 82% and Government at the low end with 20%.
It's important to compare turnover rates within the specific context of an industry to understand whether a rate is high or low.