Revenue per employee
also known as revenue per head · revenue per FTE
Total revenue divided by the number of full-time staff - a quick benchmark of how productively an agency turns people into income.
For example, an agency billing $2,000,000 with 16 full-time-equivalent staff earns $125,000 per employee. Comparing it over time or against peers shows whether the agency is getting more efficient or just adding headcount.
Why it matters to agencies: revenue per employee is a fast read on efficiency and pricing power - it rises when an agency raises rates, lifts utilisation or productizes, and stagnates when it grows by simply hiring. It is one of the cleanest numbers for spotting whether scale is actually paying off.
It varies widely by model, but many agencies land around $100k-200k per full-time-equivalent; the trend over time matters more than the absolute.
Revenue per employee = total revenue ÷ number of full-time-equivalent staff
Use FTE so part-time and freelance hours count fairly.
Revenue per employee calculator
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What is revenue per employee?
Total revenue divided by the number of full-time staff - a quick benchmark of how productively an agency turns people into income.
How do you calculate revenue per employee?
Divide total revenue by the number of full-time-equivalent staff over the same period.
What is a good revenue per employee for an agency?
It varies widely by model, but many agencies fall somewhere around $100,000-200,000; the trend over time matters more than the absolute number.
How do you increase revenue per employee?
Raise rates, lift utilisation, productize services, and grow value rather than just headcount.