Revenue Per Employee Calculator

Calculate revenue per employee (or FTE). Benchmark productivity and staffing efficiency.

Use the Revenue Per Employee Calculator

Enter annual revenue and average employees (or FTE). Revenue per employee is calculated.

Inputs

Annual revenue and average number of employees (or FTE).

Results

Revenue per employee
$80,000

Revenue per employee = Annual revenue ÷ Employees. Use FTE if you have part-time staff so the denominator reflects full-time equivalent headcount.

What this metric means

Revenue per employee indicates how efficiently you turn labour into revenue. Useful for benchmarking and planning headcount as you scale.

How to calculate it

Revenue per employee = Annual revenue ÷ Average number of employees (or FTE). Use the same period for both (e.g. last 12 months).

How to improve the metric

Increase revenue (pricing, volume, mix) without proportionally increasing headcount; automate or outsource; or improve productivity per person.

Common mistakes

Using revenue from one period and headcount from another; mixing full-time and part-time without converting to FTE; including contractors inconsistently.

How to interpret your result

Compare to industry benchmarks and your history. Rising revenue per employee often reflects better efficiency or higher-value work; falling may signal bloat or wrong hiring.

FAQs

What is revenue per employee?
Annual revenue divided by the average number of employees (or FTE). It's a simple measure of how much revenue each person generates.
Should I use headcount or FTE?
Use FTE when you have part-time staff so the denominator reflects full-time equivalent labour. Otherwise headcount is fine for full-time teams.
What's a good revenue per employee?
It varies by industry and business model. Compare to your sector and your own prior periods rather than a universal target.
How do I get average employees?
Use (start + end) ÷ 2 for the period, or monthly average if you have it. Avoid using a single point-in-time count if headcount changed a lot.

Related tools

Revenue Per Employee Calculator

Calculate revenue per employee (or FTE). Benchmark productivity and staffing efficiency.

Use the Revenue Per Employee Calculator

Enter annual revenue and average employees (or FTE). Revenue per employee is calculated.

Inputs

Annual revenue and average number of employees (or FTE).

Results

Revenue per employee
$80,000

Revenue per employee = Annual revenue ÷ Employees. Use FTE if you have part-time staff so the denominator reflects full-time equivalent headcount.

What this metric means

Revenue per employee indicates how efficiently you turn labour into revenue. Useful for benchmarking and planning headcount as you scale.

How to calculate it

Revenue per employee = Annual revenue ÷ Average number of employees (or FTE). Use the same period for both (e.g. last 12 months).

How to improve the metric

Increase revenue (pricing, volume, mix) without proportionally increasing headcount; automate or outsource; or improve productivity per person.

Common mistakes

Using revenue from one period and headcount from another; mixing full-time and part-time without converting to FTE; including contractors inconsistently.

How to interpret your result

Compare to industry benchmarks and your history. Rising revenue per employee often reflects better efficiency or higher-value work; falling may signal bloat or wrong hiring.

FAQs

What is revenue per employee?
Annual revenue divided by the average number of employees (or FTE). It's a simple measure of how much revenue each person generates.
Should I use headcount or FTE?
Use FTE when you have part-time staff so the denominator reflects full-time equivalent labour. Otherwise headcount is fine for full-time teams.
What's a good revenue per employee?
It varies by industry and business model. Compare to your sector and your own prior periods rather than a universal target.
How do I get average employees?
Use (start + end) ÷ 2 for the period, or monthly average if you have it. Avoid using a single point-in-time count if headcount changed a lot.

Related tools