Employee Turnover Cost Calculator

Find out what quitting is really costing you — and what keeping people is worth. Enter your numbers below for an instant estimate.

1%50%
Cost to replace each employee
5%50%
Your estimated impact
~15 employees lost per year
$487,500
annual cost of turnover
Current cost$487,500
After reduction$365,625
You could save $121,875/year
by reducing turnover 25%
Propsly Pro costs $600/year — this scenario is a 203× return.

How the math works

The calculator uses the standard turnover cost formula that HR researchers and analysts rely on. First, it estimates how many people you lose in a year: your headcount multiplied by your annual turnover rate. Then it multiplies that by the cost of replacing each person — expressed as a percentage of their annual salary.

annual turnover cost = headcount × turnover rate × (average salary × replacement multiplier)

Take the defaults above as a worked example: a 100-person company with an average salary of $65,000 and 15% annual turnover loses about 15 people a year. At the "Typical" replacement cost of 50% of salary, each departure costs $32,500 — so the company burns roughly $487,500 every year just replacing the people who walked out the door. That's money that never shows up as a line item on any budget, which is exactly why most leaders underestimate it.

The replacement multiplier is the one input people debate, so we give you three research-backed options. Use Low (33%) for mostly entry-level or hourly roles, Typical (50%) as a conservative blended estimate for a mixed workforce, and High (150%) if you're losing experienced knowledge workers, engineers, or managers — where recruiting, ramp-up time, and lost expertise push costs far past one year's salary.

Why employees really leave

Pay matters, but it's rarely the whole story. Gallup's research consistently finds that a majority of the global workforce is not engaged at work, and that disengaged employees are the ones most actively looking for the exit. The Work Institute's Retention Report has found year after year that around three out of four voluntary departures are preventable — driven by things employers control, like career development, management behavior, and feeling valued.

Employees who don't feel adequately recognized are about twice as likely to say they'll quit within the next year (Gallup / Workhuman).

Think about what that means for the number at the top of this page: most of the cost you just calculated isn't an unavoidable tax of doing business. It's the price of engagement problems that never got fixed — contributions that went unnoticed, wins that were never celebrated, and people who quietly concluded that nobody would miss them.

How peer recognition reduces turnover

Recognition is one of the cheapest, fastest levers a leader can pull to improve retention. When people feel seen — by their manager and by their peers — they build the social connection that makes leaving hard. Deloitte's research on recognition programs found organizations with a strong recognition culture report up to 31% lower voluntary turnover than those without one.

Peer recognition is especially powerful because colleagues see the work managers miss: the late-night bug fix, the teammate who unblocked three other people, the quiet mentor. That's the idea behind Propsly — a Slack-native recognition tool where teammates give each other "props" right in the flow of work. Every give is celebrated publicly in a feed channel, streaks and milestones keep momentum going, and leaders get analytics showing exactly where recognition is flowing (and where it isn't).

The savings slider above defaults to a 25% reduction in turnover — a defensible midpoint given the recognition research. Even at a modest 10%, most companies find the savings dwarf the cost of any recognition program. Propsly's core features are free for unlimited users, so the return-on-investment math is about as friendly as it gets.

Methodology and sources

The replacement cost multipliers in this calculator come from widely cited workforce research:

  • Low — 33% of salary: The Work Institute Retention Report estimates the cost of replacing an employee at roughly one-third of that worker's annual earnings.
  • Typical — 50% of salary: SHRM (the Society for Human Resource Management) puts average replacement costs at 50–60% of an employee's salary, with total costs of turnover ranging from 90% to 200% once lost productivity is included. We use the conservative end.
  • High — 150% of salary: Gallup estimates the cost of replacing an individual employee at one-half to two times their annual salary; 150% represents the mid-upper range typical for knowledge workers and managers.
  • Recognition impact: Gallup and Workhuman's joint research on recognition and retention, and Deloitte's analysis of recognition programs (up to 31% lower voluntary turnover).

All calculations run locally in your browser. This calculator provides directional estimates for planning conversations — your actual costs depend on role mix, industry, and local labor markets.

Frequently asked questions

How much does employee turnover cost?
Replacing a single employee typically costs between 33% and 150% of that employee's annual salary, depending on the role. For a 100-person company with an average salary of $65,000 and 15% annual turnover, that adds up to roughly $487,500 per year at a conservative 50% replacement multiplier.
How do you calculate the cost of employee turnover?
Multiply the number of employees you lose per year (headcount × annual turnover rate) by the cost to replace each one (average annual salary × a replacement multiplier of 33%–150% depending on role seniority). The full formula is: headcount × turnover rate × (average salary × replacement multiplier).
What is a good employee turnover rate?
It varies by industry, but an annual voluntary turnover rate under 10% is generally considered strong. Many industries average 15–20% or higher — hospitality, retail, and call centers often exceed 30%. What matters most is regrettable turnover: losing the people you wanted to keep.
What are the hidden costs of employee turnover?
Beyond recruiting fees and job ads, turnover costs include manager and team time spent interviewing, onboarding and training a replacement, the 6–12 months it takes a new hire to reach full productivity, lost institutional knowledge, disrupted customer relationships, and the morale hit on the teammates left behind — which itself drives more turnover.
How does employee recognition reduce turnover?
Employees who don't feel adequately recognized are about twice as likely to say they'll quit within a year, according to Gallup and Workhuman research. Organizations with strong recognition cultures report significantly lower voluntary turnover — Deloitte research puts it at up to 31% lower. Recognition is one of the cheapest, fastest levers a leader can pull to improve retention.
Is this employee turnover cost calculator free?
Yes. The calculator is completely free, runs in your browser, and doesn't require an email address or signup. All calculations happen locally — we never see or store your numbers.

Turnover is expensive. Recognition is free.

Propsly brings peer recognition into Slack in under 5 minutes — free for unlimited users.

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