How To Calculate Revenue Per Employee

In this case you would find the revenue per employee formula gives you a ratio of 50 000 per employee.

How to calculate revenue per employee. Revenue per employee also called sales per employee is a financial ratio that measures the revenue generated by each employee of the company on average. For example imagine a company has a yearly revenue of 5 million and has an average of 100 employees for that year. How to calculate revenue per employee revenue per employee formula. It s important to understand a company s revenue per employee in order for a company to find effective uses for its employees.

Start your calculation with the companies total revenue typically gross revenue divide the revenue by the total number of workers to provide the revenue per employee figure. The revenue per employee calculation is very simple. Revenue per employee ratio formula in excel with excel template here we will do the same example of the revenue per employee ratio formula in excel. The revenue per employee ratio is important for determining the efficiency and productivity of the average employee of a company.

The revenue per employee is a calculation which will calculate how much revenue each employee brings in for the company on average. It equals the company s total revenue divided by the average number of employees for the period. It is very easy and simple. To perform the revenue per employee calculation divide the revenue 5 000 000 by the number of employees 100.