Methodology: Revenue Per Employee Calculator

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 / headcount

4. 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

SEC EDGAR (public-company 10-Ks, for self-assembled benchmark comparisons) as of 2024

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.