Create Date: October 18, 2024
Last Modified Date: December 3, 2024
Calculating revenue per employee is rather simple. It only requires two variables:
The result you get will be a dollar amount that represents the average revenue that each employee has contributed to generating. The higher that this number is, the more likely it is that you have a more efficient team who can generate lots of revenue on their backs. If this number is rather low, there are a number of things to look at including workplace efficiency and the necessity of all your team members.
Our revenue per employee tool is made to be very simple and easy to use. The steps involved include:
Imagine you run a company that has generated $5 million in revenue this year, and you have a total of 100 employees. If you want to quickly calculate revenue per employee, you can now use this tool to do so. First, you will enter 5,000,000 into the revenue field. Then, you will enter 100 into the employee count field.
Now we are ready to hit calculate and get our answer. Once we do we learn that our revenue per employee is $50,000. You can now use that number as you please to assess your business and how you think you should move forward.
A good revenue per employee value is different for each company, industry, sector, and more. There is no real good or bad number; primarily, if you are profitable and thriving while making good money, you are likely operating with a good revenue per employee.
Revenue per employee can help companies understand their employee's efficiency and productivity towards the company's goals and operations.
At the time of this calculator's creation, Apple's revenue per employee for the latest quarter was around $532,300.
Revenue per employee cannot be negative because revenue can only be as low as zero.