Productivity Calculator

Created by Dominika Miszewska, MD, PhD candidate
Reviewed by Dominik Czernia, PhD candidate and Jack Bowater
Last updated: Feb 15, 2022

Are you looking for a way to measure the economic growth of your business and compare it with others? With this productivity calculator, you can quickly assess its overall productivity and organization. ๐Ÿ’ต๐Ÿ’ต It gives you the result per working hour and individual performance per one employee.

In the article below, you'll find more information on how to calculate productivity, labor productivity formula, and how to apply the results in practice.

What is labor productivity?

Labor productivity measures the number of goods and services produced in a certain time. Most often this certain time means one labor hour. Here, we also calculate the output per worker. The term is common in business planning and while comparing between businesses and economic plans.

โ†—๏ธ A business may increase productivity, thus boosting their income by introducing new technologies or improving the workers' performance.
Labor productivity is useful in the assessment of economic growth and standards present in a unit. It indicates the efficiency and quality of human capital.

Labor productivity formula

The formula for calculating labor productivity differs from calculating the output per person or per labor hour. The type of work doesn't matter, it can be anything. For example, making a roof, putting up a fence, or working in an office.

Revenue may be the money, measured in sales, produced units, service-made income. What we invest are either employees, time, materials, or machines. You can use labor productivity formula in two ways:

  1. Labor productivity per person

    productivity = revenue / number of employees

  2. Productivity calculation per hour

    productivity = revenue / number of hours

In this calculator, we focus mainly on hours or employees working on a project. Instead of putting the number of employees, you can always give the number of machines as the formula stays the same, regardless of income type.

Productivity calculator explanation

How to calculate productivity using this tool? It's easy! All you need to know is:

  • The revenue ๐Ÿ’ธ - from the goods or services produced within a given time or by a given number of employees

and one of the two below:

  • The number of employees
  • The total number of working hours.

If you know both - it will determine productivity per hour and employee. Insert the numbers, and below, in the results section, you'll see the answers. This calculator also works backward, which means that you can fill in the results section and know how much revenue, employees, or hours till the deadline you need.

Productivity calculation - examples

Now, let's think of a small business of house cleaning. Two employees are working for 8 hours. After a day of work, the revenue reaches $1200. Therefore, productivity is:

  1. Per person ๐Ÿง‘โ€๐Ÿ’ผ

    $1200 / 2 = $600

  2. Per hour โฑ๏ธ

    $1200 / 8 = $150

Now, how can you use this calculator to compare? Imagine there are two employees who specialize in putting concrete for driveways and construction, Mark and Rob.

Mark works full time (40 hours per week), while Rob only three days a week (24 hours per week). Mark's outcome is $12,300 in a month, and Rob's $5,500. Let's see who's more productive. How to calculate the productivity in that case?

  1. Mark's productivity:

$12,300 / (40 h * 4 weeks) = $12,300 / 160 = $77 per hour

  1. Rob's productivity:

$5,500 / (24 h * 4 weeks) = $5,500 / 96 = $57 per hour

Therefore, as you can see, Rob's productivity per hour is much smaller than Mark's.

Dominika Miszewska, MD, PhD candidate
Work hours
Employees
Revenue
$
Results
๐Ÿง‘โ€๐Ÿ’ผ Per employee
$
๐Ÿ•’ Per hour of work
$
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