How do I calculate Revenue per employee?

Use the formula(s) on this page. Keep inputs consistent by period and basis.

What are good benchmarks?

Benchmarks vary by model and stage. See Benchmarks on this page for ranges.

Inconsistent definitions/time windows; wrong basis (revenue vs gross profit).

Pitchkit

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GLOSSARY

Revenue per employee

Annualized revenue divided by headcount; efficiency metric.

Why it matters

Indicates operational efficiency and scalability. Improves as company matures.

Benchmarks

Early stage: $100-200k. Growth stage: $200-400k. At scale: $300-500k+. Top performers exceed $500k.

Worked example

ARR $3M; 18 employees → Revenue per employee = $3M/18 = $167k.

Common pitfalls

Comparing across different business models; not accounting for contractors; ignoring stage differences.

Back to Glossary

GLOSSARY

Revenue per employee

Annualized revenue divided by headcount; efficiency metric.

Why it matters

Indicates operational efficiency and scalability. Improves as company matures.

Benchmarks

Early stage: $100-200k. Growth stage: $200-400k. At scale: $300-500k+. Top performers exceed $500k.

Worked example

ARR $3M; 18 employees → Revenue per employee = $3M/18 = $167k.

Common pitfalls

Comparing across different business models; not accounting for contractors; ignoring stage differences.

Revenue per employee

Why it matters

Benchmarks

Worked example

Common pitfalls

Revenue per employee

Why it matters

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Deck snippet

Formulas

FAQs

Why it matters

Benchmarks

Worked example

Common pitfalls

Why it matters

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Deck snippet

Formulas

FAQs

How do I calculate Revenue?

What are good benchmarks?

Common pitfalls?