Free HR calculator
Retention Savings Calculator
Estimate annual savings from lower turnover, including departures avoided and replacement costs. Compare those savings with planned retention spending.
About this calculator
Method note: What employee turnover actually costs Note reviewed:
What to expect Have your average headcount, salary, and current and target turnover rates ready. About two minutes.
Your workforce and turnover
Replacement cost
Annual retention savings
How to use your estimate
Email your results
Send yourself a copy of your calculation and inputs.
How the calculation works
Estimating the value of retention
Each departure carries recruiting, onboarding, and ramp-up costs. The calculator estimates how many departures your target turnover rate would avoid and multiplies that figure by the estimated replacement cost per employee.
See the calculation
Estimating replacement costs
Gallup estimates replacement costs at approximately 40% of salary for frontline roles, 80% for technical positions, and 200% for leaders and managers.
Choosing a turnover target
Start with your turnover history. Compare several years of results with relevant industry benchmarks, such as separation rates from the BLS JOLTS survey. Use the same definition and time period for both figures. For voluntary turnover, compare with quit rates. Consider the roles involved when setting your target.
Using savings to evaluate investments
Compare your estimated gross savings with spending on manager training, compensation changes, and other efforts to reach your retention target.
Calculate replacement costs
See what each departure costs
The Cost of Turnover workbook estimates separation, vacancy, recruiting, onboarding, and ramp-up costs. Use those figures to evaluate retention investments.
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Compare this estimate with your records to help plan your next step.