Distinct from the ongoing cost of employing someone — this estimates the one-time cost of replacing someone who leaves: recruiting, onboarding, training, and lost productivity.
How it works
The departing employee’s annual salary times an estimated turnover cost percentage gives the estimated replacement cost.
What this does not include
Turnover cost estimates vary widely by role type and seniority — this calculator applies whatever percentage is entered rather than a single fixed industry figure, since specialized or senior roles typically cost proportionally more to replace than entry-level ones.
How to use this calculator
- Enter the departing employee’s annual salary and an estimated turnover cost percentage.
A worked example
A $60,000 salary role, with turnover cost estimated at 50% of salary: turnover cost = 60,000 × 0.5 = $30,000 per departure.
What the variables mean
| Variable | Meaning |
|---|---|
| Salary | Annual salary of the departing role |
| Turnover cost % | Estimated replacement cost as a percentage of salary, covering recruiting, onboarding, and lost productivity |
Edge cases worth knowing
Turnover cost estimates commonly range from 20% to 200% of salary depending on role seniority and complexity — this calculator applies whatever percentage is entered, so choosing a realistic rate for the specific role matters.
Zero salary makes the calculation meaningless, so the calculator declines to show a result for that input.
Frequently asked questions
What’s included in turnover cost estimates?
Recruiting and advertising costs, interview time, onboarding and training, lost productivity during the vacancy and ramp-up period, and sometimes severance or exit costs for the departing employee.
Why do more senior roles cost more to replace?
Longer hiring processes, higher salaries (and thus higher recruiting fees, which are often percentage-based), and a longer ramp-up period to full productivity all scale turnover cost upward with seniority.
How can turnover cost estimates inform retention strategy?
Comparing the estimated cost of losing an employee against the cost of retention efforts (raises, benefits, engagement programs) can help justify investment in reducing turnover in the first place.
