Employee Turnover Cost Calculator

Estimate the financial impact of employee departures.

1. What role or position do you want to calculate cost for?

2. What are the employee's average annual salaries in that role? ($)

3. How many employees in that role have quit or been let go in the last 12 months?

4. What fixed costs are associated with a new hire in this role? ($) (e.g., certifications, swag, job-board listing, background check, tools, courses etc.)

Cost Percentage of Salary (%)

Understanding the Calculation

The total turnover cost is calculated using the formula:

Total Cost = # Exits × [ (Avg Salary × Cost %) + Fixed Cost ]

Average Salary

Annual pay for one person in that role. This represents the production value you lose while the job is empty and during the ramp-up time of a new hire.

Cost % of Salary

A decimal fraction (e.g., 0.35 for 35%) that estimates the "soft" costs of one exit. These include lost productivity from the vacant position, time spent by other employees covering duties, reduced team morale, interview time, onboarding time, and the initial lower productivity/potential mistakes of a new hire. Most studies suggest a range of 0.30 to 0.40 (30-40%).

Fixed Cost per Exit

The direct, hard cash you spend each time you need to back-fill a position. This includes expenses like advertising the job opening, recruiter fees (if applicable), background checks, drug screenings, certification courses, essential tools or equipment for the new hire, and company swag. These costs are incurred regardless of the salary.

# Exits (in 12 months)

The total number of employees in the specified role who have left the company (voluntarily or involuntarily) over the past year. This figure multiplies the single-exit cost to provide an estimated annual impact.

Employee Turnover Cost Calculator

Calculation Results for

Lets Break This Down

Understanding the Calculation