Revenue per employee is a quick way to compare productivity between companies in the same industry. Software and finance companies often exceed $500,000 per employee, while retail and hospitality are far lower because they are labor-intensive.
How to use the Revenue per Employee Calculator
- Annual revenue
- Net income
- Number of employees (FTE)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter annual revenue, net income and the number of employees (use full-time equivalents for part-time staff).
Tips
- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.
Common mistakes to avoid
- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.
Inputs explained
| Field | What to enter |
|---|---|
| Annual revenue | Amount in your currency |
| Net income | Amount in your currency |
| Number of employees (FTE) | A number |
What each result means
- Revenue per employee = [Annual revenue]÷[Number of employees (FTE)]
- Profit per employee = [Net income]÷[Number of employees (FTE)]
- Revenue per employee per month = [Revenue per employee]÷12
Example values
How the main result changes when Annual revenue changes and everything else stays at the example values above:
| Annual revenue | Revenue per employee |
|---|---|
| 6,000,000 | 100,000 |
| 9,000,000 | 150,000 |
| 12,000,000 | 200,000 |
| 15,000,000 | 250,000 |
| 18,000,000 | 300,000 |
| 24,000,000 | 400,000 |
Formula
Revenue per employee = revenue ÷ employeesProfit per employee = net income ÷ employeesWorked example
Inputs — Annual revenue: $12,000,000; Net income: $1,200,000; Number of employees (FTE): 60.
Results — Revenue per employee = $200,000.00; Profit per employee = $20,000.00; Revenue per employee per month = $16,666.67.
Frequently asked questions
What is a good revenue per employee?
It depends on the industry – compare with direct competitors.
Should I use FTE?
Yes – part-time staff should count as fractions of a full-time employee.
Does higher always mean better?
Usually, but heavy outsourcing can inflate the figure.
What formula does the Revenue per Employee Calculator use?
Revenue per employee = revenue ÷ employees.