How to use this calculator
- Enter or choose leavers to replace.
- Enter or choose annual salary of the role.
- Enter or choose separation cost per leaver.
- Enter or choose recruiting cost per hire.
- Enter or choose onboarding and training per hire.
- The total replacement cost updates as you type. Use Copy result or Share to keep it.
Method
Per hire = Separation + Recruiting + Onboarding + Salary ÷ Working days × Vacant days × Lost% + Salary ÷ 12 × Ramp months × Shortfall%; Total = Per hire × Leavers
- Lost%
- value of lost output per vacant day as % of daily pay
- Shortfall%
- average productivity gap of the new hire during ramp-up
Worked example
- Vacancy = 52,000 ÷ 260 × 30 × 100% = $6,000; ramp-up = 52,000 ÷ 12 × 3 × 50% = $6,500.
- Per hire = 500 + 4,000 + 2,500 + 6,000 + 6,500 = $19,500 (37.5% of salary).
- Total for 10 leavers = $195,000.
With these assumptions each replacement costs about $19,500, so ten leavers cost $195,000.
What the result means
Compare the total with what retention would cost: a pay adjustment, a manager-training programme or better onboarding often pays for itself if it prevents a few departures.
Assumptions and limits
- All leavers are in similar roles and are replaced.
- Vacancy and ramp-up costs are valued from salary using the percentages you enter.
- Published “percentage of salary” rules of thumb vary widely; this calculator uses only your own inputs and does not apply any benchmark.
Questions
Why value the vacancy at salary?
It is a simple, conservative proxy for lost output. If you pay overtime or temps to cover, enter that cost as a percentage of daily pay instead.
Should I include lost customers or morale?
Those can be real but are hard to measure. Add a figure to separation cost only if you can justify it.