HR & Recruitment calculator
Employee Retention Rate Calculator
Calculate employee retention by following the starting workforce cohort and excluding employees hired during the reporting period.
FormulaRetention rate = (ending employees - new hires still employed at end) / starting employees x 100
Formula
Employee retention rate
Define the workforce population and treatment of transfers, leave and acquisitions consistently before comparing retention periods.
Retention rate = (ending employees - new hires still employed at end) / starting employees x 100
Start with 120 employees and end with 132, including 30 new hires still employed. The retained starting cohort is 102, so retention is 85%.
SourcesThis calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
Sources and assumptions
Source notes
This calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
- Effective year
- Current rules
- Last verified
- 2026-09-25
Define the workforce population and treatment of transfers, leave and acquisitions consistently before comparing retention periods.
Official and reference sources
Assumptions
- Count only new hires still employed at period end; exclude people who joined and left within the period.
- Inputs must imply a retained starting cohort between zero and the starting headcount; inconsistent inputs are flagged.
- Use a consistent population and treatment of internal transfers, rehires and organisational changes.
Not included
- Average-headcount turnover, tenure distribution, regrettable turnover, new-hire retention and role-specific cohort analysis.
- Automatic equivalence with 100% minus turnover when a different denominator is used.
FAQ7 common questions for this calculator.
FAQs
Which new hires should I subtract?+
Subtract only new hires still employed at period end. If 30 people joined and five of them left, enter 25. Subtracting all 30 would understate retention of the starting cohort.
Is retention always 100% minus turnover?+
No. This retention formula uses starting employees as its denominator, while turnover often uses average headcount.
Can retention exceed 100%?+
No. The retained starting cohort cannot be larger than the starting cohort, even when total headcount grows.
How does the Employee Retention Rate Calculator calculate the result?+
For the Employee Retention Rate Calculator, it uses the Employee retention rate: Retention rate = (ending employees - new hires still employed at end) / starting employees x 100. Start with 120 employees and end with 132, including 30 new hires still employed. The retained starting cohort is 102, so retention is 85%.
What information do I need to use the Employee Retention Rate Calculator?+
Enter the values requested by the form, keep units consistent, and use the displayed assumptions to decide whether the Employee Retention Rate Calculator matches your scenario.
How accurate is the Employee Retention Rate Calculator?+
Employee Retention Rate Calculator is accurate for the values and assumptions entered on this page. It uses the Employee retention rate. Recheck the inputs before relying on the estimate.
What should I check before using the Employee Retention Rate Calculator result?+
For the Employee Retention Rate Calculator, check that the units, inputs, and assumptions match your situation. Change one input at a time to understand which values have the largest effect on the result.
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How to use the Employee Retention Rate Calculator
Calculate employee retention by following the starting workforce cohort and excluding employees hired during the reporting period. The page also explains the employee retention rate and shows a practical example: Start with 120 employees and end with 132, including 30 new hires still employed. The retained starting cohort is 102, so retention is 85%.
- 1
Define the cohort
Count the people employed on the first day of the chosen period.
- 2
Exclude surviving new hires
From ending headcount, subtract hires who joined after the start and are still employed at the end.
- 3
Check retention
The remaining original employees divided by starting headcount is retention. Inconsistent counts are flagged rather than capped.