How to calculate revenue per employee in Excel

Step 1: Count part-timers as FTE

A head count treats someone working 10 hours a week the same as someone working 40. Full-time equivalent (FTE) fixes that: full-time staff count as 1 each, and part-time hours are divided by the hours a full-time person works.

Put your full-time hours per month in H2. 160 is a sample; use whatever your business counts as full time. Then FTE for a month is =C2+D2/$H$2. November 2025 had 14 full-time staff and 210 part-time hours: 14 + 210/160 = 15.3 FTE.

If you only track people, not hours, a plain headcount works too. Just say which one you used whenever you share the number.

Step 2: Revenue per FTE for the year

Divide total revenue by the average FTE across the same months: =SUM(B2:B13)/AVERAGE(E2:E13). The 12 months add up to $2,367,000 and FTE averaged 17.18, so revenue per FTE is about $137,800.

Use the average, not one month's count. Revenue came in across the whole year, so the people who earned it should be counted across the whole year too.

By headcount instead of FTE, =SUM(B2:B13)/AVERAGE(C2:C13) divides by an average of 15.8 full-time staff and leaves the part-timers out entirely, so it looks higher: about $149,500. Pick one definition and keep it.

The hiring-month trap

Four people started in October, taking FTE from 18.4 to 22.5. If you divide the year's revenue by October's count, =SUM(B2:B13)/E13, you get about $105,200, and it looks like productivity fell by almost a quarter overnight. It didn't: the new people were there for one month of the twelve.

The same happens the other way: a team that shrank at year end looks more productive than it was. The average of the month-end counts smooths this. If you only have the start and end of the year, (start + end) / 2 is a rough second best.

New hires also take time before they bring in revenue. Expect the ratio to dip for a few months after a big hiring round and judge the trend over several quarters.

By quarter with SUMIFS and AVERAGEIFS

Put the first day of a quarter in H3. Quarter revenue is =SUMIFS(B2:B13,A2:A13,">="&H3,A2:A13,"<"&EDATE(H3,3)), and the quarter's average FTE is the same pattern with AVERAGEIFS on column E. Dividing one by the other gives revenue per FTE for the quarter.

Q3 2026 (July to September) took $621,000 with 18.04 FTE on average: about $34,420 per FTE for the quarter. Q2 was about $34,800 ($593,000 over 17.04 FTE), so revenue grew but revenue per FTE dipped slightly, because the team grew faster. Multiply a quarter's figure by 4 only if you want a rough yearly rate to compare with the yearly number.

Change H3 to 2026-04-01 to see Q2 without touching the formula.

What the number does and doesn't tell you

Revenue per employee is most useful against your own past: is each person's share of the revenue going up as you grow? It's much less useful against other businesses. A software company and a restaurant with the same revenue need very different numbers of people, so the ratio mostly tells you what kind of business it is.

It also ignores costs. Revenue per employee can rise while profit falls, for example if you outsource work to contractors who aren't in the headcount. Put contractors in as FTE from their hours if you want to compare like with like, and look at profit per employee next to it.