Employee Retention ROI Calculator

Annual addressable turnover spend = expected exits × (cost per hire + vacancy payroll). Tune weeks vacant to match your fill time.

Inputs

Scenario: Expected exits/year = headcount × (turnover % ÷ 100). Each exit costs hiring cost plus (weeks vacant ÷ 52) × average salary as payroll coverage while the seat is open. Does not include lost revenue or training.

What is employee retention ROI?

Retention ROI compares the cost of programs (not modeled here) to the turnover spend you avoid—recruiting, onboarding, and vacancy coverage tied to departures.

This page quantifies the addressable annual cost so you can stack a retention budget against a measurable denominator.

How do you estimate turnover cost?

Multiply expected exits by cost per exit: direct hiring spend plus a payroll allowance for weeks the role sits empty at average salary.

Add revenue or error risk only if you have a defensible model—otherwise you overstate savings. CAC-style thinking applies if sales roles churn.

What costs count beyond recruiting fees?

Common adders: manager interview time, agency fees, signing bonus, ramp productivity, and coverage payroll while the seat is open—this calculator includes hiring line + vacancy weeks × salary.

For SaaS-heavy teams, also see SaaS efficiency ROI when tooling reduces HR admin hours.

SaaS efficiency ROI · Small business benchmarks · What is ROI?