Result
Revenue per employee
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Revenue per employee = revenue for the period ÷ headcount over that same period. It's a rough but quick gauge of business scale relative to team size.
The figure varies hugely by industry and business model: capital-intensive manufacturing and low-margin trading companies usually show much higher revenue per employee than consulting or software development, where value comes mostly from people rather than equipment or inventory turnover. It's most meaningful compared against your own past periods or direct competitors in the same industry, not across industries.
The metric says nothing about profitability — a company can grow revenue per employee while losing money on every sale. For the full picture, pair it with gross or operating margin.