Employee Turnover & Retention Rate Calculator
Enter your headcount and separations for any period and get your turnover rate, retention rate, and an annualized figure you can benchmark. Works for turnover and attrition — the formula is the same; only what you count as a separation changes.
Count everyone who left — voluntary and involuntary. For attrition rate, count only the departures you didn't backfill.
Annual turnover rate
12.2%
separations ÷ average headcount (98) × 100
Retention rate
88%
share of the starting headcount that stayed the whole period
The formulas behind the numbers
Turnover rate = (separations ÷ average headcount) × 100
Retention rate = (employees who stayed the whole period ÷ employees at the start) × 100
Average headcount is the simple average of your starting and ending headcount. The two rates answer different questions — turnover counts events against your average size, retention tracks what happened to the people you started with — which is why they don't always sum neatly to 100%. For the full treatment of edge cases (mid-period hires, averaging choices, monthly vs annual reporting), see our guide on how to calculate employee turnover rate.
Turnover vs. attrition: same math, different meaning
This calculator doubles as an attrition rate calculator. The formula is identical — departures over average headcount. The difference is what you count: turnover normally includes every separation you intend to backfill, while attrition refers to departures that permanently shrink the team. Whichever you report, define it once and keep it consistent, or quarter-over-quarter comparisons become meaningless. We unpack the distinction (and when each number matters) in our attrition rate guide.
Reading your result
- Trend beats benchmark. A rising monthly rate is worth investigating even if the absolute number still looks "normal" for your industry.
- Segment the number. Break it down by team, manager, location, and tenure band — company-wide averages hide the story.
- Split regretted from non-regretted. A rate driven by exits you wanted is a different problem (or no problem) compared to losing the people you most needed to keep.
Frequently asked questions
- How do you calculate employee turnover rate?
- Turnover rate = (separations during the period ÷ average headcount) × 100. Average headcount is usually the simple average of your starting and ending headcount for the period. Count all separations — voluntary and involuntary — unless you're deliberately measuring only one type.
- How do you calculate retention rate?
- Retention rate = (employees who stayed the whole period ÷ employees at the start of the period) × 100. New hires who joined during the period are excluded so the number isn't distorted. Note that retention rate and turnover rate are not perfect mirrors: turnover uses average headcount and counts events, while retention tracks the starting population.
- What's the difference between turnover rate and attrition rate?
- Both divide departures by average headcount. The difference is intent: turnover usually covers all separations that you plan to backfill, while attrition typically refers to departures that permanently reduce headcount — the role isn't refilled. In practice many teams use the terms interchangeably, so always state your definition when reporting.
- Should I measure turnover monthly or annually?
- Both. Monthly turnover is an early-warning signal that catches spikes quickly; annual turnover smooths seasonal noise and is the figure most benchmarks and boards expect. This calculator annualizes monthly and quarterly figures for you.
- What is a good employee turnover rate?
- It varies too much by industry, geography, and role mix for a single healthy number. The more useful reads are your own trend over time, the split between regretted and non-regretted departures, and differences between teams — a stable company-wide rate can hide one team quietly bleeding talent.
Turnover is cheaper to prevent than to calculate.
TeamPredict flags resignation risk early from public LinkedIn signals — giving you lead time to retain your best people before they hand in notice.
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