**How to calculate Attrition rate (Formula of Attrition rate)**

(The formula and correct logic behind calculation of Attrition Rate)

((no. Of attritions x 100) / (Actual Employees + New Joined)) /100.

**Examples:****1)** Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

150 20 25 155

So according to the formula: ((20 x 100) / (150 + 25)) / 100

Which comes to 0.1142 i.e. 11%

Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20

Which clearly shows that 175 – 20 = 155, which is your current headcount and at the same time you can say my attrition is 11.42% that shows you lost 20 employees of 150 and 25 more joined which makes count to 175.

**2)** Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

100 50 0 50

This is the special case where we are considering attritions only keeping into mind that nobody has joined in particular month.

So according to the formula: ((50 x 100) / (100)) / 100

Which comes to 0.5 i.e. 50%

Now as you had 100 previously and now 0 joined so it makes 100 + 0 =100

Now if you calculate 50% of 100 i.e. 100 x 0.5 = 50

Which clearly shows that 100 – 50 = 50, which is your current headcount and at the same time you can say my attrition is 50% that shows you lost 50 employees of 100 and 0 joined which makes count to 50.

**3)** Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

500 200 100 400

So according to the formula: ((200 x 100) / (500 +100)) / 100

Which comes to 0.3333 i.e. 33.33%

Now as you had 500 previously and now 100 joined so it makes 500 + 100 =600

Now if you calculate 33.33% of 600 i.e. 600 x 0.3333 = 200

Which clearly shows that 600 – 200 = 400, which is your current headcount and at the same time you can say my attrition is 33.33% that shows you lost 200 employees of 500 and 100 more joined which makes count to 400.**4)** Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

8000 5000 500 3500

So according to the formula: ((5000 x 100) / (8000 +500)) / 100

Which comes to 0.5882 i.e. 58.82%

Now as you had 8000 previously and now 500 joined so it makes 8000 + 500 =8500

Now if you calculate 58.82% of 8500 i.e. 8500 x 0.5882 = 5000

Which clearly shows that 8500 – 5000 = 3500, which is your current headcount and at the same time you can say my attrition is 58.82% that shows you lost 5000 employees of 8000 and 500 more joined which makes count to 3500.

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