What belongs in sales turnover cost
Sales turnover creates two different costs: lost economic output and direct replacement expense. The calculator keeps them separate. Lost bookings are converted to gross profit using the entered margin; direct expense includes recruiting, severance, onboarding, and manager time.
How vacancy and coverage are calculated
The incumbent production baseline is annual quota multiplied by expected attainment. During the vacancy, temporary coverage reduces the production loss. Enter only coverage that can be sustained without double-counting bookings already assigned to another rep.
How replacement ramp loss is calculated
The replacement starts at 0% before the first productive month, increases evenly to the final ramp attainment, and then uses the post-ramp assumption. For each ramp month, the model measures the shortfall against the incumbent attainment baseline.
Why vacancy payroll savings are separate
The company may temporarily avoid base salary, expected variable pay, and benefits while the role is vacant. Hiding that savings inside another line makes the estimate hard to audit, so the tool reports gross disruption first and subtracts vacancy payroll savings afterward.
The payback result divides net turnover cost by steady-state monthly gross profit after ramp. The total recovery timeline adds vacancy, ramp, and payback months.
Read The Cost Of Hiring And Replacing An Account Executive for the distinction between first-year employment cost and incremental turnover cost. Before replacement interviews begin, use the Sales Hiring Scorecard to define the evidence the team will score. A faster replacement does not save money if the hiring process repeats the same mismatch.