Staff Turnover Cost Calculator
The real cost of losing someone — recruitment, cover, onboarding and the months of reduced productivity — and what the annual turnover rate costs across a team.
Replacement cost is not the recruiter fee.
How the staff turnover cost calculator works
Replacement cost is not the recruiter fee. It is the fee plus the manager hours, plus paying someone who is not yet productive, plus the vacancy covered by overtime or not covered at all.
Research consistently puts the total between half and twice annual salary depending on seniority. This builds it from parts you can check rather than quoting a multiplier, because the multiplier is the thing people refuse to believe.
Formula: cost = recruitment + cover + onboarding + ramp-up productivity loss
Worked examples
| Inputs | Cost per departure | Note |
|---|---|---|
| An 85k role | 40,392.31 | about 0.6× salary |
| A long ramp | 56,738.46 | productivity loss dominates |
| No agency fee | 28,392.31 | still substantial |
FAQFrequently asked questions
What does staff turnover cost?
Commonly half to twice annual salary. This builds the figure from recruitment, cover, onboarding and the ramp rather than applying a multiplier.
Why does the ramp cost so much?
Because a new starter is paid in full from day one and produces very little at first. Twenty weeks to full productivity costs roughly ten weeks of salary in lost output.
Is turnover always bad?
No. Some turnover is healthy and a rate near zero can mean nobody is being managed out. It is the involuntary loss of good people that costs.
What is a normal turnover rate?
Ten to fifteen per cent a year in most professional settings. Retail and hospitality run far higher and plan for it.
How do I use this figure?
To price retention. If five points of turnover costs more than a pay review or a manager hire, the business case makes itself.
Where these figures come from
- CIPD — Employee turnover and retention factsheet — the turnover and stability index definitions used here
- Fair Work Ombudsman — the Australian workplace regulator
Last checked: September 2026. These are standard management definitions; where practice varies, the page says which convention it uses.