Employee retention rate calculator
Employee retention rate is the headcount at the end minus new hires, divided by the headcount at the start, times 100. Start a year with 40 people and end with 44 after hiring 8, and 36 of your original 40 stayed. That's 90%.
Fill in every field to see the result.
How to use it
Step 1
Enter the headcount on the first day of the period. That's the group whose loyalty you're measuring.
Step 2
Enter the headcount on the last day, then every person hired during the period, including anyone who joined and has already gone.
Step 3
Read the retention rate beside the number of original people who left. Report the two together, since a percentage on a small team can swing hard on one resignation.
Questions people ask
What is the employee retention rate formula?
Retention rate = (employees at the end of the period minus new hires in the period) ÷ employees at the start × 100. Taking the hires out leaves only the people who were there on day one and are still there on the last day.
Why isn't retention just 100% minus turnover?
The two measure different groups. Turnover divides every leaver, including new starters who quit fast, by average headcount. Retention follows only the people you started with. A team can keep 90% of its original staff and still post high turnover if several new hires leave in their first months.
How often should I measure retention?
Yearly is the usual cadence, with a quarterly check between. A short period gives a higher figure almost by default, because fewer people have had time to leave. Compare like with like: this year against last year, or one quarter against the same quarter a year earlier.