Revenue per Employee
Revenue per employee indicates team efficiency. Formula: RPE = Revenue ÷ Employees. Use this calculator to benchmark revenue efficiency per teammate. Enter total revenue and the number of employees to understand productivity trends over time.
What is revenue per employee (RPE)?
RPE measures how much revenue each team member generates on average. It’s a proxy for operational efficiency and can highlight productivity trends across stages of growth.
Why it matters
- Helps benchmark efficiency against peers and over time.
- Guides hiring plans by linking headcount to revenue goals.
- Surfaces scale bottlenecks (support load, infra, process debt).
How to calculate
RPE = Total revenue ÷ Number of employees. Use an average headcount for the period to avoid skew from rapid hiring.
Example
$1,000,000.00 revenue and 25 employees ⇒ RPE $40,000.00.
Caveats
- Contractors and part‑time staff can distort comparisons.
- Capital‑intensive or services‑heavy models have lower RPE.
- Pair RPE with margin metrics to avoid optimizing for revenue only.
FAQ
What’s a good RPE? Varies widely; early SaaS may be $100k–$200k, mature companies higher.
Should I use FTE or total headcount? Prefer average FTEs during the period for consistency.
How often should I track RPE? Quarterly gives a balanced view across hiring cycles.