This profit per employee calculator is easy to use free excel template for sales and marketing professionals, managers and consultants. Use this free template in Excel to compute revenue per employee for your company, organization or client.
First let us understand what is revenue per employee metrics, As per Investopedia, Income or profit per employee—calculated as a company’s total profit or income divided by its current number of employees—is an important ratio that roughly measures how much money each employee generates for the firm.
Thus, from the definition above, it is evident that profit or income per employee is an important ratio that roughly measures how much income each employee generates for the company.
How does income per employee work ?
Income per employee is a one of many useful analytical tool. It measures how efficiently a particular firm utilizes its employees. Ideally, a company wants the highest ratio of income per employee possible because a higher ratio indicates greater productivity.
Income per employee also suggests that a company is using its resources—in this case, its investment in human capital—wisely by developing workers who are very productive. Companies with high income-per-employee ratios are often profitable.
Some analyst use net income per employee. However, the overall intent of these metrics is to showcase the usage of resources and understand productivity.
Formula for Income per employee
Generally, labor-intensive industries use these metrics. Labor-intensive industries are those industries where the value of human capital is more than the physical capital. Income per employee is very simple to calculate. The formula to calculate Revenue Per Employee(RPE) as follows:
Income Per Employee = Total Income / No. of Employees.
Another similar type of ratio is Revenue or sales Per Employee. It measures the average sales earned by each employee.
Example of Income per employee calculation
A company has total net income of USD 20,00,000 and the number of employees in the organization are 500.
Applying the above formula:
=20,00,000/500
=4000
Download and Use Income per Employee calculator excel template
To use this free income per employee calculator excel template, you should have Microsoft Office/ Microsoft Excel installed in your system.
After installing Excel or Spreadsheet, download the zip file of this template, extract the template using WinRAR or 7Zip decompressing software.
Once extracted, you can open the file using Excel and start entering data or customizing the template. You can customize the currency, color scheme, fields in this template as per your requirement.
This template consists of three sections, namely, Company details, Monthly data and Income Per employee (IPE) calculations. You can start using this template by plotting the data in the fields. Computation happens automatically.
