Enter the average annual salary ($), the # of employees lost per year, and the average weeks to fill the position into the Turnover Cost Calculator. The calculator will evaluate and display the Turnover Cost. 

Turnover Cost Formula

The following formula is used to calculate the Turnover Cost. 

TOC = AS / 52 * #E * #W

  • Where TOC is the Turnover Cost ($)
  • AS is the average annual salary ($) 
  • #E is the # of employees lost per year 
  • #W is the average weeks to fill the position 

How to Calculate Turnover Cost?

The following example problems outline how to calculate Turnover Cost.

Example Problem #1

  1. First, determine the average annual salary ($). The average annual salary ($) is given as 75,000 .
  2. Next, determine the # of employees lost per year. The # of employees lost per year is calculated as  10 .
  3. Next, determine the average weeks to fill the position. The average weeks to fill position is found to be 6.
  4. Finally, calculate the Turnover Cost using the formula above: 

TOC = AS / 52 * #E * #W

Inserting the values from above yields: 

TOC = 75,000 / 52 * 10 *6 = 86,538.46 ($)


Example Problem #2

The variables needed for this problem are provided below:

average annual salary ($) = 60,000

# of employees lost per year = 5

average weeks to fill position = 5

Entering these values and solving gives:

TOC = 60000 / 52 * 5 * 5 = 28,846.15 ($)