# Annualize function

1. ## Annualize function

I see a formula that our Human Resources Department is using to annualize voluntary turnover.

It looks like this:

=(E3/((A3+D3)/2))*12/months

So if I substitute with some actual data:

=(6/((22+33)/2))*12/months the answer becomes 21.8% (as the annualized voluntary turnover rate).

What does the *12/months actually do mathematically? I cannot find it in the excel help files and have not been able to figure this out using math (on the calculator).

2. ## Re: Annualize function

months is a defined name. Do insert > Name > Define to see what it is.

3. ## Re: Annualize function

Where do I insert? Do I go anywhere on the page and type insert > months > define or do I put it in the formula (and with the spaces)? I've tried various combination's to no avail.

4. ## Re: Annualize function

It would be helpful if you added the version of Excel that you use to your profile.

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