Revenue per Employee Calculator (per FTE, with profit & labour cost)

Understanding the revenue per employee calculator — concept and principle

This calculator measures how much revenue a business generates per employee, using full-time equivalents (FTE) so that part-time staff are counted fairly. It also shows revenue per head, profit per employee, labour cost per employee, labour cost as a share of revenue and revenue per unit of labour cost. Owners, investors and analysts use it as a quick productivity measure.

Revenue ÷ full-time equivalents — with the default inputs: $266,667.

How it is calculated

FTE = full-time employees + part-time employees × part-time hours as % of full time
Revenue per employee (FTE) = annual revenue ÷ FTE
Revenue per head = revenue ÷ (full-time + part-time headcount)
Profit per employee = net profit ÷ FTE
Labour cost per employee = total labour cost ÷ FTE
Labour cost as % of revenue = labour cost ÷ revenue × 100
Revenue per 1 of labour cost = revenue ÷ labour cost

The principle

Dividing revenue by staff numbers shows how much output each person supports, a broad measure of labour productivity. Headcount treats a half-time worker the same as a full-time one, which makes firms with many part-timers look less productive; FTE corrects for that. Labour cost per FTE and labour cost as a share of revenue show how much of each sale goes to paying the team. These ratios differ enormously by industry: software or trading firms can generate many times more revenue per person than retail or hospitality.

Worked example

Defaults: revenue 12,000,000; 40 full-time and 10 part-time staff at 50% hours; net profit 900,000; labour cost 3,600,000.

FTE = 40 + 10 × 0.5 = 45.
Revenue per FTE = 12,000,000 ÷ 45 = $266,667; per head = 12,000,000 ÷ 50 = $240,000.
Profit per FTE = 900,000 ÷ 45 = $20,000.
Labour cost per FTE = 3,600,000 ÷ 45 = $80,000; labour cost = 30% of revenue.
Revenue per 1 of labour cost = 12,000,000 ÷ 3,600,000 = 3.33.

Each point is the calculator re-run with only “Full-time employees” changed; the gold point is the default example. Change the inputs above and this chart follows your numbers.

Full-time employees	Revenue per employee (FTE)
10	$800,000
20	$480,000
30	$342,857
40	$266,667
50	$218,182
60	$184,615
80	$141,176

How to read the result

Track the figures over time: rising revenue per FTE suggests productivity gains or price increases, while a fall may follow hiring ahead of growth. Compare only with firms in the same industry and business model. A high revenue per employee with a low profit per employee can mean thin margins or high non-labour costs.

Common mistakes

Comparing headcount-based figures with FTE-based ones.
Comparing across very different industries.
Ignoring contractors and outsourced work, which add output without adding employees.
Using year-end staff numbers in a year of rapid hiring; an average is better.

Keep in mind: Revenue per employee is a broad indicator, not a measure of individual performance. Use it together with profit and cost ratios.

Frequently asked questions

What is a good revenue per employee?

It depends strongly on the industry; compare with similar businesses.

Why use FTE instead of headcount?

FTE counts part-time staff by the hours they work, so firms with different staffing mixes can be compared.

How can revenue per employee be increased?

Through automation, better processes, higher prices or growth without proportional hiring.

Sources: Standard productivity ratio: revenue or profit ÷ full-time-equivalent employees

Checked 9 Nov 2026. Standard productivity ratio: revenue (or profit) ÷ number of employees; full-time equivalents = full-time staff + part-time staff × hours as a share of full time.

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