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Free tools for HR leaders

Cost of Employee Turnover Calculator

Work out what staff turnover is really costing your business, and how much of it you could have prevented.

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The Australian average is 16% (AHRI)
Estimated annual cost
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Where Compono fits

Most turnover starts at the hiring decision, not the exit interview. A new hire who looks right on paper but does not fit the team is the single most expensive mistake in this calculator. Compono Hire handles the process every applicant tracking system (ATS) handles, then adds the part they skip: behavioural and culture-fit data that shows you who will actually stay and thrive. Lyre's used Compono Hire to scale from 4 to 70 people across five continents in two years without losing fit. The Coffee Club kept culture consistent across 400 outlets the same way.

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How it's calculated

Turnover cost is built from four parts for every person who leaves: the cost of the exit itself, the cost of the role sitting empty, the cost of hiring a replacement, and the cost of getting that replacement up to speed. We default the total replacement cost to 1.5 times annual salary, the mid-point of the range Gallup and Australian sources report (anywhere from half to twice salary depending on the role). You can adjust every input. The benchmark turnover rate of 16% is the Australian average reported in the AHRI Quarterly Australian Work Outlook (March quarter 2025).

Common questions

How is the cost of employee turnover calculated?

Add four costs for each departure: separation (admin and exit processing), vacancy (lost output while the role is open), replacement (recruiting and hiring the next person), and ramp-up (training and reduced productivity before they are fully effective). Multiply the cost per departure by the number of people who leave in a year. A common shortcut is to use 1.5 times annual salary as the total replacement cost.

What is the average cost of employee turnover in Australia?

Australian advisory research puts the true all-in cost at roughly 1.5 times the employee's annual salary once lost productivity and ramp-up are counted (Bentleys Australia). The average annual turnover rate in Australia is about 16%.

How much employee turnover is preventable?

The Work Institute's 2025 Retention Report attributes about 63% of turnover to factors the employer can influence, such as management, career growth, and culture fit, rather than pay or relocation.

What is a good employee turnover rate?

It depends on the industry. The Australian average sits near 16%. Smaller organisations tend to run lower (around 11%) and larger ones higher (around 21%). Construction and hospitality run hotter than average.

Figures are estimates using published benchmarks (Gallup 2019; AHRI Quarterly Australian Work Outlook, March quarter 2025; Work Institute 2025 Retention Report; Bentleys Australia). Rates reviewed annually.