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).
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 ÷ employees
Profit per employee = net income ÷ employees
Worked 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, so 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.