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?

**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.

**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.

**Next, determine the number of employees that left of the time period.**In this scenario, the number of employees that left was 20.

**Finally, calculate the annualized turnover rate using the formula above.**ATR = (E/L/M)*12*100

ATR = (20/100/3)*12*100

ATR = 80%