Total terminations (separations) during the year divided by the average number of employees equals the annual turnover rate. If calculated for a particular month, it can be multiplied by 12 to result in an annual rate. If done monthly, the annual rate can be achieved by adding the monthly estimates.
(Number of separations during the month ÷ average number of employees during the month) x 100
Example #1: 35 separations out of 400 employees = turnover rate of 8.7 percent
Example #2: 5 separations out of 100 employees = turnover rate of 5 percent