👥 Revenue Per Employee Calculator
Calculate revenue productivity per employee
Total annual revenue
Total number of employees
How to Use This Calculator
Enter Total Revenue
Input your total annual revenue for the period you're analyzing.
Enter Number of Employees
Input the total number of employees. Use average number of employees for the period if it changed during the year.
Calculate
Click calculate to see revenue per employee, which measures workforce productivity.
Review Results
Use revenue per employee to evaluate productivity, compare to industry benchmarks, and identify optimization opportunities.
Formula
Revenue Per Employee:
Revenue Per Employee = Total Revenue / Number of Employees
Monthly Revenue Per Employee:
Monthly Revenue Per Employee = Revenue Per Employee / 12
Example 1: Technology Company
Total Revenue: $10,000,000, Employees: 100
Revenue Per Employee: $10,000,000 / 100 = $100,000 per employee
Monthly: $100,000 / 12 = $8,333 per employee per month
✅ Good productivity for tech company
Example 2: Service Business
Total Revenue: $5,000,000, Employees: 50
Revenue Per Employee: $5,000,000 / 50 = $100,000 per employee
Monthly: $100,000 / 12 = $8,333 per employee per month
About Revenue Per Employee Calculator
The Revenue Per Employee Calculator helps businesses measure workforce productivity by calculating how much revenue each employee generates. This critical efficiency metric shows the productivity of your workforce, helping you evaluate performance, compare to industry benchmarks, optimize staffing levels, and make informed decisions about workforce investments.
When to Use This Calculator
- Productivity Analysis: Measure workforce productivity and efficiency
- Benchmarking: Compare your revenue per employee to industry standards
- Performance Tracking: Track productivity trends over time
- Staffing Decisions: Evaluate whether to add or reduce staff
- Department Comparison: Compare productivity across departments
- Investment Analysis: Evaluate ROI of workforce investments
Why Use Our Calculator?
- ✅ Quick Calculation: Instantly calculate revenue per employee from revenue and headcount
- ✅ Multiple Timeframes: Shows annual and monthly revenue per employee
- ✅ Simple Input: Easy-to-use calculator with just two inputs
- ✅ Clear Results: Easy-to-understand productivity metric
- ✅ Free Tool: No cost for essential productivity analysis
Common Applications
- SaaS Companies: Track revenue per employee for SaaS businesses
- Professional Services: Measure productivity for service businesses
- Retail: Calculate revenue per employee for retail operations
- Manufacturing: Analyze productivity for manufacturing companies
Tips for Best Results
- Accurate Employee Count: Use average number of employees for the period if headcount changed
- Consistent Revenue: Use revenue from the same period as employee count
- Compare to Benchmarks: Compare to industry averages (varies by industry: tech $200K+, services $100-200K, retail $50-150K)
- Track Trends: Monitor revenue per employee over time to identify improvements or declines
- Segment Analysis: Calculate separately for different departments or business units
Frequently Asked Questions
What's a good revenue per employee?
Good revenue per employee varies by industry: Technology $200K-500K+, Professional Services $100-300K, Retail $50-150K, Manufacturing $150-300K, Healthcare $100-200K. Higher is generally better, but compare to your industry and company size. Focus on improving your own metric over time.
Should I include all employees or just revenue-generating?
It depends on your purpose. For overall productivity, include all employees (total headcount). For sales efficiency, calculate separately for sales staff. Most companies use total employees for standard revenue per employee metric, as support staff are necessary for operations.
How do I improve revenue per employee?
Improve by: increasing revenue (better products, pricing, sales), reducing headcount (automation, efficiency), training employees, improving processes, focusing on high-value activities, using technology, and optimizing workforce. Often a combination of revenue growth and efficiency improvements works best.
Does revenue per employee vary by company size?
Yes, larger companies often have higher revenue per employee due to economies of scale, established processes, and brand recognition. Smaller companies may have lower revenue per employee but higher growth potential. Compare to companies of similar size in your industry.
Should I use full-time or total employees?
Use full-time equivalent (FTE) for accuracy. Convert part-time to FTE (e.g., 2 part-time @ 20 hrs = 1 FTE). This provides accurate productivity measurement. Alternatively, use total headcount if you want to include all workers, but FTE is more standard for productivity metrics.
How often should I calculate revenue per employee?
Calculate regularly - quarterly or annually. Track trends over time to identify improvements or declines. Also calculate it before major hiring decisions to understand productivity impact. Regular monitoring helps catch productivity changes early.