Revenue Per Employee Calculator

Calculate the average revenue per employee with this free tool based on the revenue of the company and the total employees.

Required Information

Revenue Per Employee:

What it is

What is Revenue Per Employee?

Create Date: October 18, 2024

Last Modified Date: December 3, 2024

Revenue per employee is a metric used to tie revenue to the number of employees. Essentially, each employee is helping the company generate its revenue, so if you attribute the revenue generated to each employee, that's how we arrive at revenue per employee.

How do you Calculate Revenue Per Employee?

Calculating revenue per employee is rather simple. It only requires two variables:

  • Company revenue

  • Employee count (or average count)
With these values, you can now use this formula to calculate revenue per employee:
An image showing the formula for calculating revenue per employee for a company or business.
Where:
  • RPE = Revenue Per Employee

  • R = Revenue

  • EC = Employee Count

Understanding Your Results

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.

How to Use the Revenue Per Employee Tool

Our revenue per employee tool is made to be very simple and easy to use. The steps involved include:

  1. Enter the total company revenue from a specific period of time.

  2. Enter the total number of employees that worked for the company during that specific period of time. You can also use the average count of employees during this time if this number often changed during that time.

  3. Hit calculate and get your answer instantly.

Example Calculation

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.

Revenue Per Employee - Frequently Asked Questions

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.

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