Finance Calc Kit

What is revenue per employee?

Revenue per employee (RPE) measures how much revenue each worker generates on average. It is a common productivity benchmark for comparing companies within the same industry.

For broader workforce efficiency metrics, see the productivity calculator. To analyze overall profitability, use the profit calculator.

Full-time equivalent (FTE)

\text{Part-Time FTE} = \text{Part-Time Employees} \times \frac{\text{Part-Time Hours}}{\text{Standard Hours}}

\text{Total FTE} = \text{Full-Time Employees} + \text{Part-Time FTE}

Revenue per employee formula

\text{RPE} = \frac{\text{Annual Revenue}}{\text{Total FTE}}

When net profit is provided and positive, the calculator also shows profit per employee by dividing net profit by total FTE.

Worked example

A company with $1,000,000 in annual revenue, 10 full-time employees, and 2 part-time employees working 20 hours per week (against a 40-hour standard) has 11 total FTE. Revenue per employee is approximately $90,909.09. With $150,000 net profit, profit per employee is about $13,636.36.

Frequently asked questions

Why convert part-time staff to FTE?

Part-time workers contribute fewer hours than full-time staff. Converting to FTE prevents understating productivity when part-time headcount is material.

What is a good revenue per employee?

RPE varies widely by industry. Capital-light software firms often show higher RPE than labor-intensive services businesses. Compare against direct peers.

Should I use annual or quarterly revenue?

Use annual revenue for a stable productivity ratio. If using quarterly revenue, annualize it first or compare only against quarterly peer data.

Does RPE measure profitability?

RPE measures top-line productivity per worker, not profit. High RPE with low margins may still produce weak bottom-line results. Use profit per employee alongside RPE when net income is available.

Can I share my inputs?

Yes. Changing fields updates the page URL for easy sharing.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.