Enter the number of months, the average number of employees, and the average number of employees leaving to determine the annualized turnover.

Annualized Turnover Formula

The following formula is used to calculate an annualized turnover.

ATR = (E/L/M)*12*100

  • Where ATR is the annualized turnover rate (%)
  • E is the average number of people employed during the time period
  • L is the number of employees that left during the time period
  • M is the total number of months of the period

Annualized Turnover Definition

An annualized turnover is defined as the rate or percentage of employees that leave a company over a year with respect to the total number of employees.

For example, if there is a company with 10 employees on average, and 5 people left over a year, the turnover rate is 50%. (5/10 * 100 = 50)

Example Problem

How to calculate annualized turnover?

  1. First, determine the length of the period to be analyzed.

    For this example, the number of months that the company has turnover data for is 3 months.

  2. Next, determine the average number of employees during the time period.

    In this case, the number of employees was 101, 100, and 99 for each month respectively. This leads to an average of 100 employees.

  3. Next, determine the number of employees that left of the time period.

    In this scenario, the number of employees that left was 20.

  4. Finally, calculate the annualized turnover rate using the formula above.

    ATR = (E/L/M)*12*100
    ATR = (20/100/3)*12*100
    ATR = 80%