Employee turnover cost calculator

Estimate what each departure costs in hiring, training and lost productivity, and the yearly total.

In shortCost per leaver ≈ hiring cost + training hours × wage × 2 (trainee and trainer) + ramp-up hours × wage × productivity gap. With the example inputs, that is $3,760 per leaver and $45,120 a year for 12 leavers.

Who uses itHR, owners and finance
WhenYearly planning or making the case for retention spend
You needLeavers, hiring cost, training hours, wage, ramp-up
ResultCost per leaver and yearly turnover cost

Your employee turnover cost inputs

What the calculator does

Training = training hours × wage × 2.

Ramp-up = weeks × 40 hours × wage × productivity gap.

Per leaver = hiring + training + ramp-up.

Numbers for one business

A café loses 12 baristas a year. Each hire costs $1,200, training takes 40 hours with a trainer at $16, and new hires take 4 weeks to reach full speed at about half productivity. Each departure costs about $3,760, or $45,120 a year.

How often to run the employee turnover cost

Turnover costs are real but scattered: ads and interviews, a trainer’s time, mistakes and slower work while a new hire learns. Putting a number on them helps decide what retention efforts are worth.

Use your own data where you have it. The result is an estimate of direct and productivity costs, not a full accounting.

Another employee turnover cost example

A distribution center replaces 30 pickers a year. Each hire costs $650 in ads and screening, and 24 training hours are counted twice at $19, for trainee and trainer, $912. New pickers take 3 weeks to reach full speed with an average gap of 40%, another $912. Each departure costs about $2,474, or $74,220 a year.

Reading the result

Training is counted at twice the wage because the trainee and trainer are both paid, using the same wage for both. If the trainer earns more than the trainee, the real training cost is higher than shown. The figure leaves out lost sales and the weeks a position sits empty, so treat it as a floor for what each leaver costs.

Common mistakes to avoid

Leaving out the overtime other staff work while a role is empty. Add it if vacancies last more than a week or two.
Using the same ramp-up time for every role. Skilled roles take much longer to reach full speed.
Counting only resignations. Terminations also need a replacement and cost the same to fill.

Adjusting the employee turnover cost for your team

Cafes and quick serviceCalculate cost per role, since a barista and a shift lead differ in training time.

HealthcareAdd licensing checks and orientation hours required before a new hire can work alone.

Quick winShow the yearly figure next to the cost of the retention idea you want to try. It turns a debate into a budget decision.

Questions about the employee turnover cost

Is this the full cost?

No; it leaves out effects like lost customers and team morale.

Why count training twice?

The trainee and the trainer are both paid.

What is ramp-up?

The time until a new hire works at full speed.

How do I lower it?

Better schedules, onboarding and retention.

Does the ramp-up cost assume full-time hours?

Yes, it uses a 40-hour week during ramp-up. For part-time roles, scale the weeks so weeks times 40 matches real ramp-up hours: 4 weeks at 20 hours is entered as 2 weeks.

Where does hiring cost per hire come from?

Add up ads, background checks, drug tests and interview time for a hiring round, then divide by the people who started. The cost per hire calculator works this out, and its result goes straight into this field.

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Skip the manual totals

Instead of adding up timesheets before you open the turnover cost calculator, let EZTime total employee hours. Book a demo to see it with your team.

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An estimate for planning only. It is not financial advice.