Employee turnover cost calculator
Turnover is paid in recruitment, onboarding and months of reduced productivity. Enter your headcount, turnover rate and average salary to put a yearly figure on it.
- The figures behind it · Typical turnover
- 15 % a year
- Replacement cost
- 3 to 6 months of salary
- Formula
- leavers × months × salary
How the cost is estimated
Each leaver costs a number of months of salary; the rate says how many leavers there are.
- Leavers
- Headcount × annual turnover rate. 50 people at 15 % is 7.5 leavers a year.
- Cost per leaver
- Hiring, onboarding, training and the productivity gap while the role is empty and the newcomer learns. Research puts it at 3 to 6 months of salary for most jobs; more for managers and specialists.
- Yearly cost
- Leavers × cost per leaver. Even modest retention gains pay back quickly against this figure.
Rule set 2026.1, last checked on October 12, 2026.
The result is an estimate based on the statutory rules. Your contract, collective agreement or tax code may change the figures. It is not tax or legal advice.
Frequently asked questions
How do I calculate my turnover rate?
- Leavers in the period divided by the average headcount, times 100. Twelve leavers in a year with 80 staff is 15 %.
Why months of salary?
- It scales with the role: replacing a £25,000 warehouse operative costs less than replacing a £60,000 engineer, but the proportion is similar.
What reduces turnover?
- Realistic job previews, a structured first 90 days, pay in line with the market and managers who hold regular one-to-ones. Use the salary pages to check your pay against the market.
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