Estimate the annual retention and replacement-cost effect of changing turnover within a compensation band. Enter the band’s average headcount, its current turnover rate, a proposed future rate, and the estimated cost of replacing one departure. The calculator shows expected exits before and after the change, employees retained, and avoided replacement cost. Use rates for the same band and employee population; otherwise, differences in job mix may be mistaken for retention impact.
Retention impact = Headcount × (Current turnover rate − Proposed turnover rate)
Cost impact = Retention impact × Replacement cost per exit
Positive retained headcount and cost impact indicate a lower proposed turnover rate. Negative values quantify the modeled downside of a higher rate.
This estimate does not include compensation changes required to achieve the proposed rate. Compare savings with the full incremental program cost.
For 250 employees, reducing turnover from 16% to 13% retains 7.5 people in expectation. At $18,000 per exit, replacement-cost impact is $135,000.
It is an expected annual value based on rates; actual departures occur as whole people.
Include it only if the proposed change is expected to affect it and your current rate uses the same definition.
Yes. The calculator will show negative retention and cost impact to quantify the downside.
Usually it includes incremental replacement costs rather than the departing employee’s normal salary, but use your organization’s definition.
They are not deducted automatically. Compare modeled replacement-cost savings with the separate annual cost of the pay change.
| Variable | Meaning |
|---|---|
| Average headcount | Typical employees in the band over the year |
| Current turnover | Baseline annual exit rate |
| Proposed turnover | Scenario annual exit rate |
| Replacement cost | Incremental cost assigned to one exit |