Employee Turnover Cost Calculator

Employee turnover is one of the most underestimated expenses a business can face. Research consistently shows that the total cost of replacing an employee ranges from 50% to 200% of their annual salary, depending on their role, seniority, and the complexity of the position. For highly specialized or executive-level roles, replacement costs can exceed 200% of annual compensation.

Hidden Costs Most Companies Miss

Beyond the obvious recruitment and training expenses, turnover carries a host of hidden costs that rarely appear on a balance sheet. Institutional knowledge walks out the door when an experienced employee leaves — years of context about processes, client relationships, and internal systems that cannot be easily documented or transferred. Team morale often dips when colleagues leave, which can trigger additional departures in a cascading effect sometimes called “turnover contagion.” Client relationships may suffer when a trusted point of contact departs, potentially leading to lost revenue or reduced satisfaction scores. Additionally, remaining team members frequently experience increased workload and burnout during the vacancy period, which further erodes productivity and engagement.

The Retention ROI

Given the scale of turnover costs, relatively modest investments in retention can yield dramatic returns. For example, if replacing a mid-level employee costs $60,000 and a company loses 10 such employees per year, that represents $600,000 in annual turnover costs. Investing even $100,000 in retention initiatives — such as competitive compensation reviews, professional development programs, improved management training, or flexible work arrangements — could reduce turnover by 30-50%, saving $180,000 to $300,000 annually. Common high-impact retention strategies include stay interviews, career pathing, mentorship programs, and addressing workplace culture issues proactively.

Industry Benchmarks: Average Turnover by Sector

How to Use This Calculator

Enter the departing employee’s salary, role details, and your organization’s specific cost inputs to get a realistic estimate of the total turnover cost. The results break down expenses into four categories — separation, vacancy, recruitment, and onboarding — so you can identify where the biggest costs lie and target retention efforts accordingly. Use the “What-If” section to project the financial impact of turnover across your team or department at different rates, and make the business case for investing in employee retention programs.