CCalclabhub

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.

SymbolMeaning
RPERevenue per employee
RRevenue
NHeadcount

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.