# Productivity Calculator

URL: https://speedycalculator.com/calculators/finance/productivity/
Last updated: 2026-10-25

> The productivity calculator works out labor productivity – output (revenue or units) per employee and per hour worked – and compares two periods to show the productivity growth.

## Inputs

- Output this period (revenue or units)
- Hours worked this period
- Employees
- Output previous period
- Hours worked previous period

## Results

- Output per hour
- Output per employee
- Output per hour – previous period
- Productivity growth

## Formula

```
Labor productivity = output ÷ labor input (hours or employees)
Productivity growth = (new productivity ÷ old productivity − 1) × 100
```

## Explanation

Productivity growth is the main driver of rising living standards. For a business, output per hour is a better measure than output per employee because it accounts for part-time work and overtime.

### How to use the Productivity Calculator

- **Output this period (revenue or units)**
- **Hours worked this period**
- **Employees**
- **Output previous period**
- **Hours worked previous period**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the output and total hours worked (and number of employees) for this period and a previous period.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterOutput this period (revenue or units)Amount in your currencyHours worked this periodA numberEmployeesA numberOutput previous periodAmount in your currencyHours worked previous periodA number

### What each result means

- **Output per hour** = [Output this period (revenue or units)]÷[Hours worked this period]
- **Output per employee** = [Output this period (revenue or units)]÷[Employees]
- **Output per hour – previous period** = [Output previous period]÷[Hours worked previous period]
- **Productivity growth** = ([Output per hour]÷[Output per hour – previous period] - 1)×100

### Example values

How the main result changes when **Output this period** changes and everything else stays at the example values above:

Output this period (revenue or units)Output per hour250,00031.25375,00046.88500,00062.5625,00078.13750,00093.751,000,000125

## Worked example

Inputs — Output this period (revenue or units): $500,000; Hours worked this period: 8,000; Employees: 5; Output previous period: $450,000; Hours worked previous period: 7,800.

Results — **Output per hour = $62.50**; Output per employee = $100,000.00; Output per hour – previous period = $57.69; Productivity growth = 8.33 %.

## FAQ

**How is productivity calculated?**
Output ÷ input, usually per hour worked.

**Should I use revenue or units?**
Units avoid the effect of price changes; revenue is easier for mixed products.

**How can productivity be improved?**
Better tools, training, processes and less time on low-value tasks.

**What formula does the Productivity Calculator use?**
Labor productivity = output ÷ labor input (hours or employees).


## Sources

- [U.S. Bureau of Labor Statistics – Productivity](https://www.bls.gov/productivity/)