Revenue per labour hour calculator

See how much revenue each hour of labour produces, what labour costs as a share of that revenue, and whether it is worth a closer look.

Enter your figures

Use fully loaded cost (wage plus employer costs) for a truer picture.

Revenue per labour hour

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Enter your figures to see the result.

Labour cost per hour
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Net value per labour hour
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Labour cost as % of revenue
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How to read your result

Revenue per labour hour is parts per person per hour multiplied by the sale value per part. It shows how much value each hour of labour produces before materials and overheads, so it is a quick screen for productivity and pricing.

Revenue per labour hourWhat it suggestsNext step
Under £80Needs attentionCheck output per person, waiting, rework and pricing
£80 to £200Room to improveFind the largest loss with an operations assessment
Over £200High performanceProtect it and look at digitalisation to scale

Bands are a rule of thumb. Sector, product mix and how much value is added in-house all matter.

Revenue per labour hour: your questions

Why measure revenue per labour hour?

It links output, price and labour cost in one number, so it shows quickly whether labour is being used productively and whether pricing reflects the work.

Should I use revenue or value added?

Revenue is simpler and works as a first screen. For a sharper view, subtract material cost to get value added per labour hour.

Does a low number mean my team is slow?

Rarely. Low figures usually come from waiting, rework, poor flow or pricing, not people working slowly. A floor-level assessment finds the real cause.

Want to know why the number is what it is?

An operations assessment shows where labour time is lost and what it costs.