Revenue Per FTE Calculator
Measure workforce productivity as revenue per full-time equivalent, counting part-timers by the fraction of full-time hours they work.
How it works
FTE = full-time + part-time × part-time load% · Revenue per FTE = total revenue ÷ FTE
Revenue per FTE is a cleaner productivity gauge than revenue per headcount because it counts a half-time worker as half a person instead of a whole one. It lets you compare teams and periods on equal footing regardless of how many part-timers or contractors you use. Rising revenue per FTE means each unit of labor is generating more output; a falling figure can signal over-hiring or softening demand.
Worked example
With $12,000,000 in revenue, 80 full-time and 20 part-time staff at a 50% load, the FTE count is 80 + 20 × 0.5 = 90. Revenue per FTE is 12,000,000 ÷ 90 = $133,333 — higher than the $120,000 you would get by dividing across all 100 heads.
Frequently asked questions
What is an FTE?
A full-time equivalent expresses your workforce as the number of full-time schedules it adds up to. Two people each working half of a full-time week count as one FTE.
Why use revenue per FTE instead of per employee?
Headcount treats every person as one unit regardless of hours. FTE normalizes for part-time and seasonal staff, so the productivity comparison across teams and years is fair.
What is a good revenue-per-FTE figure?
It is highly industry-specific — software firms often exceed $300,000 while labor-intensive services run far lower. Track your own trend and compare within your sector rather than against a universal target.
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Educational planning estimate, not accounting, tax or HR advice.