Monthly Employee Turnover Calculator
Calculate your workforce retention metrics accurately
Please enter valid positive numbers.
Average Employee Count:
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Monthly Turnover Rate:
0%
Projected Annual Rate:
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What is Monthly Turnover Rate?
The Monthly Turnover Rate is a critical Human Resources metric that measures the percentage of employees who leave an organization during a specific month. It includes both voluntary separations (resignations, retirement) and involuntary separations (terminations, layoffs).
Tracking this metric monthly allows businesses to identify trends early, assess the health of company culture, and estimate the financial impact of recruiting and training replacements.
The Calculation Formula
This calculator uses the standard ISO/SHRM formula for calculating monthly turnover:
Turnover Rate = (Separations ÷ Average Number of Employees) × 100
Where:
- Separations: The total number of employees who left during the month.
- Average Number of Employees: Calculated as (Employees at Start + Employees at End) ÷ 2.
How to Interpret Your Results
While specific benchmarks vary by industry (e.g., retail and hospitality typically have higher rates than tech or finance), understanding your data is key:
- Low Turnover (Below 1% Monthly): Indicates high retention. While generally positive, excessively low turnover can sometimes indicate stagnation or lack of performance management.
- Moderate Turnover (1% – 2% Monthly): Typical for many industries. It implies a healthy flow of talent without excessive disruption.
- High Turnover (Above 3% Monthly): Often signals underlying issues such as poor management, low compensation, or toxic culture. A 3% monthly rate compounds to over 36% annually, representing significant operational cost.
Why "Employees at Start" and "End" Matter
Many simple calculators only ask for the current headcount, but this is inaccurate. To get a precise rate, you must account for workforce fluctuations throughout the month. Using the average of the start and end counts smooths out spikes caused by batch hiring or layoffs.