Employee Cost Calculator
Calculate the true cost of employee turnover, including separation, vacancy, recruiting, onboarding, training, and productivity ramp-up costs. Understand the financial impact of losing employees.
Open the CalculatorThe Employee Turnover Cost Calculator measures the total cost of losing an employee and replacing them — distinct from the Bad Hire Cost Calculator (cost of underperformance) and the Hiring Cost Calculator (one-time cost to fill a position). It adds up separation costs, vacancy cost while the role is open, replacement recruiting and hiring costs, and ramp-up productivity loss for the new hire.
Separation costs include the final paycheck, unused PTO, benefits continuation, administrative expenses, and any severance. Vacancy cost — the value of work left undone while the position is unfilled — is calculated as (annual salary ÷ 365) × (productivity impact % ÷ 100) × days to fill. An $80,000 role open 45 days at full productivity impact carries roughly $9,863 in vacancy cost alone.
Recruiting costs combine agency or internal recruiter fees, job advertising, assessments, and background checks. Hiring costs add interview time, onboarding, and training for the replacement. These mirror the one-time hiring cost but are incurred specifically because the prior employee departed.
A new hire is not fully productive on day one. Ramp-up productivity loss is the sum over each ramp period of (period days × daily salary × (1 − productivity percentage)). The default schedule is Day 1–30 at 50%, Day 31–60 at 75%, and Day 61–90 at 100%. You can edit the number of periods, the days in each, and the productivity percentage for each.
Total employee turnover cost is the sum of all components, shown as a percentage of annual salary. Employee turnover costing 50–200% of annual salary is common. This estimate does not include intangible costs: damage to team morale, lost client relationships, damage to company reputation, knowledge loss, and the opportunity cost of management time. For the cost of a failed hire (underperformance), use the Bad Hire Cost Calculator.
Every rate and formula is checked against the issuing agency before publication. Last updated 2026-08-24.
IRS
FICA, FUTA tax rate & wage base
U.S. DOL
FUTA credit, federal wage & hour
State Workforce Agencies
SUTA rates, wage bases, new-employer rates
BLS
Industry salary benchmarks & turnover
Employee turnover cost is the total financial impact of losing an employee and replacing them. It includes separation costs (final pay, unused PTO, benefits continuation, severance), vacancy cost while the position is open, replacement recruiting and hiring costs, and the productivity loss while the new hire ramps up to full output.
Employee turnover commonly costs 50% to 200% of the departing employee’s annual salary, depending on role seniority and how hard the position is to fill. Entry-level and hourly roles tend toward the lower end; specialized, senior, and executive roles toward the higher end. The largest components are usually vacancy cost and ramp-up productivity loss for the replacement.
Vacancy cost = (annual salary ÷ 365) × (productivity impact percentage ÷ 100) × days to fill. An $80,000 role open for 45 days at 100% productivity impact costs roughly $9,863 — the value of the work that goes undone while nobody is in the seat. The productivity impact percentage lets you model partial coverage by a temp or redistributed workload.
Ramp-up productivity loss is the sum over each ramp period of (period days × daily salary × (1 − productivity percentage)). The default schedule is Day 1–30 at 50%, Day 31–60 at 75%, and Day 61–90 at 100%. You can edit the number of periods, the days in each, and the productivity percentage for each to match your role and seniority.
The calculator measures direct, quantifiable costs. It does not capture intangible costs such as damage to team morale, lost client relationships, harm to company reputation, institutional knowledge loss, and the opportunity cost of management time. The true total cost of turnover is almost always higher than the estimate.
For Estimation Purposes Only
TrueHireCost provides cost estimates for informational purposes only and is not professional tax, legal, or HR advice. Actual employer costs vary by experience rating, industry classification, carrier, and jurisdiction. Consult a qualified CPA, tax advisor, or HR professional before making hiring or payroll decisions.