Revenue per employee is a quick read on how much output your headcount is generating. This calculator divides total revenue by average headcount, and adds a profit-per-employee line if you enter a profit figure.
Revenue per employee = total revenue / average headcount. Using the headcount on a single date distorts the ratio in any year with heavy hiring or attrition, so this tool averages the opening and closing headcount. The metric is only meaningful in context: a software company and a staffing company operate at completely different levels, so compare against peers in your own industry and against your own trend over several years. Profit per employee is the harder test, since it strips out the cost of generating that revenue and shows whether extra headcount is actually adding to the bottom line.
It varies too widely by sector to give a single number. Capital-light software and financial firms run high; people-intensive services and retail run lower. Benchmark within your industry.
Decide once and stay consistent. If contractors do a large share of revenue-generating work, including them gives a truer ratio. Document which basis you used so year-on-year comparisons hold.
Total revenue for the period, usually the financial year, matching the same period as the headcount.
Revenue per employee measures top-line productivity. Profit per employee measures whether that productivity survives its own cost. Enter a net profit figure to see both.
Annually for the headline, quarterly if you are watching the effect of a hiring push or a restructuring.
Look at it alongside workforce cost and planned headcount. The Workforce Cost Calculator and Headcount Planning Calculator cover the cost side.
Related: the FTE Calculator for a consistent headcount base, and the Employee Lifetime Value Calculator.