How to Calculate Revenue Per Employee

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Revenue per employee is an internal management function to determine the profitability of each employee on average. This result does not give an accurate representation an individual's earnings for the company but offers an average of earnings spread out to all employees. This calculation can be specialized to compare employee segments such as sales revenue per sales employee.

Determine the number of employees at the firm. For example, Company A's records show it has 100 employees.

Determine the business revenue using the company's financial statement. For example, Company A had $500,000 in revenue this year.


Divide the amount of revenue by the number of employees. In the example, $500,000 divided by 100 employees equals $5,000 of revenue per employee.



About the Author

Carter McBride started writing in 2007 with CMBA's IP section. He has written for Bureau of National Affairs, Inc and various websites. He received a CALI Award for The Actual Impact of MasterCard's Initial Public Offering in 2008. McBride is an attorney with a Juris Doctor from Case Western Reserve University and a Master of Science in accounting from the University of Connecticut.

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