Turnover Cost Calculator

Why This Matters

Most business owners have no idea what employee turnover is actually costing them.

They see a resignation letter and think "inconvenience." They don't see the recruiting fees, the lost productivity while the role sits open, the 3 months of ramp time before the replacement is fully productive, or the ripple effect on team morale. The number is almost always shocking — and it's almost always preventable.

For SMBs, a 25% annual turnover rate can quietly drain 15–20% of total payroll. That's money leaving the business every year that nobody's tracking.

💡 Your moment: When you walk into a client meeting with a real dollar figure — "your turnover cost you $180,000 last year" — you're not their bookkeeper anymore. You're the person who sees what the P&L doesn't show. That's the conversation that turns a compliance relationship into an advisory one.

Step 2 — Role Type

Select the type of role experiencing turnover — or enter a custom salary below.

Average Annual Salary ($)

Total Employees

Step 3 — Turnover Rate

Client's Annual Turnover Rate (%)

How many employees left in the last 12 months ÷ avg headcount × 100

Voluntary vs. Involuntary (%)

Voluntary turnover costs more — harder to predict and plan for

Total Annual Turnover Cost

—

How This Client Compares

Turnover Rate vs. Industry Peers —

Top performers Industry avg High turnover

Client Turnover Rate

—

Industry Average

—

Employees Leaving/Year

—

Cost per Turnover

—

Savings Potential

If turnover dropped to…	Annual Cost	Savings vs. Now

Where the Cost Comes From

Cost Component	Per Departure	Annual Total

Sources: SHRM Human Capital Benchmarking Report, BLS Job Openings & Labor Turnover Survey (JOLTS), Work Institute Retention Report, Gallup State of the Workplace. Replacement cost multipliers reflect industry-validated ranges for SMB employers.

Ready to get more from your payroll practice? Use our free portfolio valuation tool to find out what your book is worth and explore your options.

Get a Free Portfolio Valuation