Employee Turnover Calculator

The calculator follows the way the U.S. Bureau of Labor Statistics measures turnover. A separations rate is the number of separations divided by employment, multiplied by 100. Separations include everyone who left the payroll for any reason: quits, layoffs and discharges, and other separations.

1. Average headcount = (employees at the start + employees at the end) divided by 2.
2. Turnover rate for the period = employees who left divided by average headcount, times 100.
3. Average monthly rate = the period's rate divided by the number of months it covers.
4. Annualized rate = the average monthly rate times 12.

BLS publishes turnover as monthly rates: total separations during a month as a percent of employment. Its annual figures are averages of those monthly rates, so compare them with your average monthly rate, not with your rate for the whole year. The benchmarks below are the 2025 annual averages for selected industries.

Turnover is not one number. Split it by type before you act on it: quits are voluntary departures other than retirements and transfers, while layoffs and discharges are separations the employer initiates. Other separations are retirements, transfers to other locations, disability and deaths. They have different causes, so they call for different fixes.

• Calculate the rate by team, location and tenure band. Company-wide averages hide the teams where people leave.
• Track the trend every quarter with the same method, so changes are real rather than artifacts of a new formula.
• Pair the number with the reasons: exit interviews and regular engagement surveys tell you why people leave and who is likely to be next.