Attrition rate sounds fancy, but itโs just a way of asking:
How many people are leaving your company (or group) over time?
Whether you’re in HR, customer success, or education, attrition rate is a key metric that shows how well you’re retaining people โ employees, customers, students, and more.
Table of Contents
๐ What is Attrition Rate?
Attrition Rate (also called churn rate in some industries) measures the percentage of people who leave a group during a specific period.
You can calculate it monthly, quarterly, or annually โ depending on what you want to track.
๐งฎ Attrition Rate Formula
Hereโs the simple formula:
Attrition Rate = (Number of Leavers / Average Number of People) ร 100
Where:
- Leavers = How many people left during the period
- Average Number of People = (Start + End) รท 2
โ Example
Letโs say:
- You started the year with 100 employees
- Ended with 90
- 15 people left during the year
๐ Average employees = (100 + 90) รท 2 = 95
๐ Attrition rate = (15 / 95) ร 100 = 15.79%
So your annual attrition rate is 15.79%.

๐ Why Does Attrition Rate Matter?
- In HR, it helps you monitor employee turnover
- In customer service, it shows you how many clients you're losing
- In education, it tells you if students are dropping out
- In subscriptions, it reflects churn and growth balance
Tracking attrition helps you improve retention, spot red flags, and make better decisions.