Revenue per employee (RPE) is a financial metric that measures the average amount of revenue generated by each employee in a company. It is calculated by dividing the company's total annual revenue by its total number of employees: RPE = Total Annual Revenue / Number of Employees. For example, if a company has $1 million in revenue and 10 employees, the RPE is $100,000. This revenue per employee calculator helps assess workforce efficiency and productivity.

A good revenue per employee varies significantly by industry. Technology and software companies often achieve $250,000-$500,000+ per employee due to scalability and automation. Professional services firms typically range from $100,000-$250,000. Manufacturing and retail businesses usually see $50,000-$150,000 per employee due to labor-intensive operations. Use this calculator to compare your RPE against industry benchmarks to assess your company's efficiency and identify improvement opportunities.

To improve revenue per employee, focus on automation and technology to reduce manual work, optimize processes to eliminate inefficiencies, invest in employee training to boost productivity, increase prices or shift to higher-margin products, implement better sales and marketing strategies, and consider outsourcing non-core functions. Technology companies achieve high RPE through software scalability, while service businesses improve RPE by specializing in high-value services. Regular monitoring with this RPE calculator helps track improvement progress.

The standard approach is to include all full-time equivalent (FTE) employees in revenue per employee calculations. Part-time employees should be counted proportionally (e.g., two half-time employees = 1 FTE). Contractors are typically excluded unless they function as regular employees. For the most accurate comparison, use consistent methodology when calculating RPE over time and when benchmarking against competitors. This calculator uses total employee count, so adjust your input to reflect FTE if needed.

Technology companies achieve higher revenue per employee due to software scalability (serving millions without proportional staff increases), high automation levels, lower marginal costs for additional customers, and premium pricing for innovative solutions. Companies like Google, Facebook, and Microsoft often exceed $1 million per employee. In contrast, labor-intensive industries like retail and manufacturing have lower RPE due to physical operations requiring more staff. Understanding these industry differences is crucial when using this calculator for benchmarking.