1. Scope
Calculates revenue per employee and profit per employee and positions the result against public-company benchmarks by industry. It is a productivity indicator, not a valuation metric.
2. Inputs and outputs
Inputs
- annualRevenue number (currency)
- operatingProfit number (currency) default: 0
- headcount number
Outputs
- revenuePerEmployee
annualRevenue / headcount.
- profitPerEmployee
operatingProfit / headcount.
Engine source: src/lib/revenue-per-employee-calculator/engine.ts
3. Formula / scoring logic
rpe = annual_revenue / headcount
ppe = operating_profit / headcount4. Assumptions
- Headcount is full-time equivalent (FTE). Part-time and contractor counts should be pro-rated before entry.
- Revenue is GAAP-like (booked revenue), not bookings or cash collected.
5. Data sources
6. Known limitations
- Cross-industry benchmarks vary by orders of magnitude. Oil majors run $3–5M/head; consulting firms $200–400K/head. Compare within-industry.
- A high RPE can mean productivity or aggressive outsourcing; the tool does not distinguish.
7. Reproducibility
Input
annualRevenue = $5,000,000, operatingProfit = $1,000,000, headcount = 20.
Expected output
rpe = $250,000, ppe = $50,000.
8. Change log
- 2026-04-24 methodology page first published.