Revenue Per Employee
A productivity ratio: net revenue divided by average full-time-equivalent headcount for the same period.
Revenue per employee (RPE) divides a company’s net revenue by its average headcount, ideally measured in full-time equivalents. It describes how much revenue the business generates for each person on staff, and it reflects the business model, pricing and capital intensity more than any individual’s output.
The ratio depends on definitions. Year-end headcount, average headcount and average FTE with part-timers and contractors can give figures that differ by 15% or more for the same company, and revenue can be gross or net of pass-through items. Compare only figures defined the same way.
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