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Employee Retention Rate Calculator

Human Resources · Free tool

Employee Retention Rate Calculator

Retention answers a simple question: of the people you had at the start, how many are still here? This employee retention rate calculator follows that starting group through a period, so HR leaders, founders and managers can report retention without new hires flattering the number.

Your entries stay in this browser. Use Fill example to see a finished page first.

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What this HR tool gives you

Enter headcount at the start and end of the period and the new hires who joined in between. The page shows the retention rate, how many of the starting group stayed and left, and the turnover of that starting group.

What you enter

  • Headcount at start: employees on the first day of the period
  • Headcount at end: employees on the last day of the period
  • New hires during the period: people who joined and were still employed at the end

Worked example

A company starts the year with 100 employees, ends with 105 and hired 15 people who are still there. 105 − 15 = 90 people from the starting group remain, so the retention rate is 90.0%, and 10 of the original 100 left.

How is employee retention rate calculated?

Retention rate = (headcount at end − new hires) ÷ headcount at start × 100. The numerator is the number of people from the starting group who are still employed. Left from the start = headcount at start − those who stayed.

New hires who joined and left inside the period should be left out of both the end headcount and the hires, which is how the formula is designed. If end headcount minus hires is negative or above the starting headcount, the page asks you to check that the numbers cover the same period.

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Tips before you use the result

  1. Report retention and turnover together: retention tracks the starting group, while turnover also counts new hires who left quickly.
  2. Run it per team or manager; company-wide retention can hide one team losing a third of its people.
  3. Use a twelve-month period for annual reporting and quarters for early warnings.
  4. Pair a falling rate with the cost of employee turnover calculator to show leadership what it costs.

Frequently asked questions

What is a good employee retention rate?

A retention rate of 90% or higher over a year is often treated as healthy, but it depends heavily on industry. Hospitality and retail run lower than professional services. Compare with your own history and similar employers rather than a single number.

What is the difference between retention rate and turnover rate?

Retention follows the people you started with and shows the share who stayed. Turnover divides all leavers, including new hires who left, by average headcount. The two do not always add up to 100% because they use different groups.

Why subtract new hires?

New hires were not part of the starting group, so including them would make retention look better than it is. Subtracting them leaves only the original employees who are still on the payroll at the end.

Can I use it for a single team?

Yes. Use the team's headcount at the start and end and its own new hires. Internal transfers in and out should be handled consistently, usually counted as hires and leavers for the team.

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Results depend on the figures you enter; check them against your own records before you rely on them. Last updated: October 2026 · Kurums editorial team.