Operations
Revenue per employee
The average revenue attributed to each person employed.
The Formula
RPE = R / N
The average revenue attributed to each person employed.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| RPE | Revenue per employee | currency per person per year | Average output per head. |
| R | Revenue | currency | Revenue for the period, usually a year. |
| N | Headcount | people | The number of employees, ideally full time equivalents. |
What Each Symbol Means
RPEcurrency per person per year
Revenue per employee
Average output per head.
Rcurrency
Revenue
Revenue for the period, usually a year.
Npeople
Headcount
The number of employees, ideally full time equivalents.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate revenue per employee page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Revenue Per Employee, filed under Business. Every number the guide produces comes from substituting into this one line.