Revenue Per Employee Calculator

There's no need to be concerned if you are unable to calculate the new faculty member's revenue per employee because this free Revenue per Employee Calculator, can assist you. All you have to do is enter the revenue (R) and the number of employees (E) details, and you will obtain the needed revenue per employee.


Revenue (R):
Number of Employees (E):

Revenue Per Employee Calculator: This tool makes use of the total income and employee count. It's an important measure to monitor in most labour-intensive sectors or firms that rely on human resources to create income. In the module given below, you will find out the manual calculations of Revenue per Employee as well as solved examples. Also, refer revenue per employee definition, and formula.

What is the Revenue Per Employee?

Revenue per Employee can be defined as the average amount of revenue produced by each employee for an organization.

Why should HR Measure Revenue per Employee Ratio?

For a company to find effective uses for its employees, it is important to understand the company's revenue per employee. When a company has high revenue per employee, that is an indication that they have an effective staffing structure as well as achieving its sales targets efficiently.

Revenue per Employee Formula

Revenue per Employee is a very simple calculation. Divide your total company revenue by the number of employees you have & you will get the answer as revenue per employee.

RPE = R / E

Here,

RPE is the Revenue per Employee

R is the total revenue of your company

E is the total number of staff.

Manual Steps for Calculating the Revenue per Employee

  1. Check the company accounts for the revenue of a specific time period.
  2.  Find out the total number of employees working with the company.
  3. Use the RPE formula to calculate revenue per employee.

Begin by utilizing a few more calculators, then visit Arithmetic Calculator for reading computations and equations for a variety of themes.

Revenue per Employee Example Question

A big IT firm in Silicon Valley has yearly revenue of 60 billion dollars & has 154000 working employees. Calculate the RPE of a company.

Solution:

Here, revenue of a company, R = 60 billion = 60,000,000,000

Total number of employees, E = 154,000

So, using the formula, we get,

RPE = R / E

= (60,000,000,000) / (154,000)

= 389,610.38

This IT Company earns revenue of 389,610.38 dollars per employee.

Frequently Asked Questions on Revenue per Employee Calculator

1. How much revenue should a company make per employee?

As calculated, usually an average small business generates revenue of $100,000 per employee, while for the large companies it gets closer to $200,000. 


2. Is revenue per employee a good metric?

The revenue per employee is a very helpful metric while making the comparison of revenue per employee year-on-year. This metric provides a rough idea of the money generated per individual working at an organisation.


3. What is the use of the revenue per employee ratio?

The revenue per employee ratio is very useful in determining the generated revenue per employee working at a company.


4. What is the average revenue per FTE?

It has been found that at the median, each year several companies are bringing the revenue of $322,835 as a revenue per employee.