Calculators · Workforce
Labor productivity calculator
This labor productivity calculator divides output by hours worked to show output per labor hour and the labor cost of each unit.
Your numbers
Everything updates as you type. Nothing is uploaded.
Result
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The formula
Labor productivity = total output ÷ labor hours
Output can be units produced, tasks completed or revenue generated. Keep the unit consistent, since mixing revenue and units produces a figure that means nothing.
Worked example
Example: 12,000 units from 320 labor hours is 37.5 units per hour. At a labor cost of 9,600 (in any currency), that is 30 an hour and 0.80 of labor cost per unit. It is also 1.25 units per unit of labor cost.
Common questions
Is this the same as therapy productivity?
No. Therapy productivity is a proportion of paid time that was billable. Labor productivity is output divided by hours, which is a rate rather than a percentage.
Can I use it as an employee productivity calculator?
Yes. Enter one employee’s output and paid hours to see that person’s output per hour. Compare two employees only when their output is counted in the same unit.
What counts as labor hours?
All paid hours that contributed to the output, including supervision and setup. Leaving them out makes the figure look better than it is.
Can I use revenue as output?
Yes, but revenue changes with price as well as with effort, so it measures two things at once.
Longer explanation: The therapy productivity formula, with worked examples