Loading page
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Enter revenue for a period and average headcount to see revenue per employee, per full-time equivalent if you have it, and an annualised figure for comparison.
Revenue per employee is a broad measure of workforce productivity: how much revenue the organisation generates for each person on the payroll. This revenue per employee calculator works it out per head and, optionally, per FTE.
It is most useful as a trend within one organisation. Business model, outsourcing and pricing move it as much as productivity does.
Enter your figures, then press Calculate
Your 5 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
Revenue for a period divided by the people who earned it over that period. The method spends most of its time on the denominator, because average headcount and FTE give different answers.
Revenue per employee = Revenue for the period ÷ Average headcount; Average headcount = (Start + End) ÷ 2
Use operating revenue from the accounts for the period. Exclude one-off income such as asset sales if you want the figure to reflect the operating business.
Average the opening and closing headcount, so a company that hired heavily during the year is not judged against its year-end size. Monthly averages are more precise if you have them.
Divide revenue by average headcount. If you have average FTE, divide by that as well to remove the effect of part-time staff.
Multiplying a quarter or month by the number of periods in a year assumes that period was typical. Seasonal businesses should compare like periods instead.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Divide revenue for a period by the average number of employees over the same period. Average the opening and closing headcount, or use a monthly average for more precision.
Headcount is simpler and more common. FTE is fairer when many staff are part-time, because each part-time employee counts only for the fraction of a role they fill. The calculator shows both if you enter FTE.
Include them if they do the work that generates the revenue and you want a fuller picture of the workforce. Whatever you choose, use the same definition each time you measure.
Not necessarily. It can rise because work was outsourced, prices rose or a low-margin product grew. Read it alongside payroll cost and profit.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
14-day free trial · Full access to all 12 modules · Zero implementation fee · Cancel anytime