Revenue Per Hour Formula

Truth be told the sales per hour metric weighs heavily in assessing sales efficacy.

Revenue per hour formula. The sales revenue per hour metric might also be referred to as revenue per employee hour and there are other ways in which it can be calculated as with most productivity metrics out there. Revenue per employee calculates the number of sales generated by one employee or sales done by each employee. This is one of the important measures of performance of employees of the company. On your budget your revenue per hour is calculated by taking your budget s total sales and dividing it by the number of man hours in your field labor budget minus the of unbillable hours that you have.

An efficient sales level is usually accomplished in the cases in which. The above formula is the underlying principle for various productivity metrics such as revenue per employee revenue per hour units produced per hour etc. Examples of productivity formula with excel template let s take an example to understand the calculation of productivity in a better manner. Revenue per employee ratio formula.

So if your company had 1 464 000 in sales and 23 750 man hours in the field. It s the total revenue your crews are producing per man hour. Revpash as a revenue management tool for food and beverage outlets in a hotel similar to revpar for rooms.