# How To Calculate Employee Turnover Rate – Forbes Advisor

Before you start calculating employee turnover rate, you need to decide on the time period you want to calculate for. It can be monthly, quarterly or yearly.

How to calculate employee turnover rate in three easy steps:

### Step 1. Gather the necessary information

To calculate employee turnover, you need to collect three pieces of information. First, the number of employees your organization had at the beginning of the period (e.g. year). Second, the number of employees your organization had at the end of the period. And third, the number of employees who left your company during this period.

To calculate the turnover rate, you need these three pieces of data:

- Number of employees at the beginning of the period
- Number of employees at the end of the period
- Total number of employees who left during this period

Once you have gathered this information, move on to the next step.

### Step 2. Calculate the average number of employees

To calculate your employee turnover rate, you must first calculate your average headcount. To do this, add your number of employees at the beginning of the period (e.g. beginning of the year) to your number of employees at the end of the period (e.g. end of the year).

Here is the formula to calculate your average headcount:

avg Number of employees = [(number of employees at the beginning + number of employees at the end)/2]

Suppose your company had 42 employees at the beginning of the year and 62 employees at the end of the year. In the same period, 13 employees left the company. To calculate your average headcount, you would simply add 42 and 62 and then divide the total by two.

*average number of employees *= 62 + 42/2 = 52

### Step 3. Calculate the percentage of turnover rate

Next, use your average headcount to calculate your turnover rate. To do this, divide the number of employees who have left the company by your average number of employees. Then multiply that answer by 100 to get your turnover rate percentage.

Here is the formula to calculate your turnover rate percentage:

annual turnover = [(number of employees who left/average number of employees)*100]

Using the same example, divide 13 (the number of employees who left during the period) by 52 (the average number of employees) and then multiply that number by 100 to get an employee turnover rate of 25%.

*Annual sales %* = 13/52*100 = 25%