Quick answer: Turnover rate = separations ÷ average employees × 100, where average employees = (start + end headcount) ÷ 2. Starting at 200, ending at 210 with 22 leavers gives an average of 205 and a turnover rate of 10.73%.
The employee turnover rate formula
turnover % = (separations ÷ average employees) × 100Average employees = (starting + ending headcount) ÷ 2Averaging start and end headcount smooths out hiring and departures during the period, giving a more representative rate than a single snapshot.
Worked example
200 employees at the start, 210 at the end, 18 resignations and 4 terminations
- Average: (200 + 210) ÷ 2 = 205
- Turnover: 22 ÷ 205 × 100 = 10.73%
- Voluntary: 18 ÷ 205 × 100 = 8.78%
- Involuntary: 4 ÷ 205 × 100 = 1.95%
Result: 10.73% annual turnover
The split matters because voluntary and involuntary turnover usually have different root causes.
What counts as a good turnover rate?
| Annual range | General read |
|---|---|
| Under 10% | Low, often healthy for most industries |
| 10% – 20% | Moderate, typical for many white-collar sectors |
| 20% – 30%+ | High, common in retail, hospitality and call centres |
These are reference points, not targets. Compare against your own sector and region.
Who calculates turnover rate
- HR teams reporting workforce health to leadership.
- People analytics teams tracking retention trends.
- Small business owners watching staffing stability.
- Consultants benchmarking clients.
Tips for tracking turnover accurately
- Separate voluntary and involuntary.
- Track monthly to catch trends early.
- Annualize short periods before comparing with benchmarks.
- Exclude internal transfers.
Frequently asked questions
What is the formula for employee turnover rate?
Turnover rate (%) = separations ÷ average employees × 100, where average employees = (starting headcount + ending headcount) ÷ 2.
What is a good employee turnover rate?
It varies by industry, but under 10% a year is often considered low, 10 to 20% moderate and above 20% high. Retail and hospitality usually run higher.
What is the difference between turnover and attrition?
They are often used interchangeably. Some organisations use attrition only for roles that are not refilled.
Should I include layoffs?
Yes, as involuntary separations. Many organisations also report voluntary and involuntary turnover separately.
How do I annualize a monthly or quarterly rate?
Multiply by 12 ÷ the number of months. The calculator does this automatically for periods under 12 months.
Do internal transfers count?
No. Moving to another team or role inside the company is not turnover.
Related tools
Accuracy note: This uses the standard HR turnover formula for planning and reporting. For formal workforce reporting or benchmarking studies, confirm methodology with your HR or people-analytics team.
Content Lead, Anchor AI Tools, California, USA. Spotted an error? Email hello@anchoraitools.com and it will be checked and corrected. See our editorial standards.