Attrition rate measures the percentage of employees who leave and whose roles are not backfilled, against average headcount for the period, meant to capture actual workforce shrinkage rather than simple churn.

Formula, and the distinction from turnover that’s rarely honored in practice

Attrition Rate = (Departures Not Replaced ÷ Average Headcount) × 100

A company starting the year at 200 employees, losing 30 people and backfilling only 15 of those roles, ends at 185. Average headcount is (200 + 185) ÷ 2 = 192.5, so attrition rate is (15 ÷ 192.5) × 100 ≈ 7.8%. In theory this differs from employee turnover, which counts every departure regardless of backfill. In practice, most HR software and even a lot of published HR content use “attrition” and “turnover” interchangeably, counting all departures either way. It’s worth knowing the precise distinction exists, while recognizing that popular usage frequently ignores it, so check exactly how a number is being calculated before comparing it to anything else.

Frequently asked questions

Is attrition rate the same as turnover rate?

Technically no, but the two terms are used interchangeably often enough that you should always confirm which definition a specific reported number is actually using.

What’s a typical attrition rate in India?

It varies considerably by sector and survey, IT services and GCCs have generally trended lower in recent years while e-commerce and some other sectors run meaningfully higher, so a single national average isn’t very useful for benchmarking your own numbers.

Should voluntary and involuntary departures be counted together?

They can be, but separating voluntary from involuntary attrition tells a much more useful story about what’s actually driving the number.

Calculate it with the Attrition Rate Calculator, and see our employee attrition guide.