Compute labor productivity as output per hour or per worker.
Please do not make financial decisions based on these results.
What is the Productivity Calculator?
Compute labor productivity as output per hour or per worker. To use the Productivity Calculator, enter output, labor hours, earlier output, earlier labor hours; it returns output per hour, earlier output per hour, productivity growth, and shows them instantly as you type.
Where the Productivity Calculator fits
Compute labor productivity as output per hour or per worker. The main figure it returns is the Output per hour, worked out from the values you enter.
It belongs with the other accounting & microeconomics tools. If you are comparing options or checking a result from another angle, try the Net Profit Margin Calculator, Operating Margin Calculator or the EBIT Calculator.
How to use the Productivity Calculator
- Fill in the fields. You will need Output (units), Labor hours, Earlier output (units), Earlier labor hours. Use numbers from the same accounting period so the ratios are comparable. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Output per hour, and the cards below show Earlier output per hour, Productivity growth. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Productivity Calculator using the default values shown in the calculator above:
Inputs
| Output (units) | 48,000 |
|---|---|
| Labor hours | 3,200 |
| Earlier output (units) | 44,000 |
| Earlier labor hours | 3,100 |
Results
| Output per hour | 15 |
|---|---|
| Earlier output per hour | 14.19 |
| Productivity growth | 5.68% |
With these inputs the calculator returns Output per hour: 15. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Output (units) from 48,000 to 57,600 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Output per hour | 15 | 18 | +20% |
| Earlier output per hour | 14.19 | 14.19 | 0% |
| Productivity growth | 5.68% | 26.82% | +372% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Productivity Calculator reports Output per hour, earlier output per hour and productivity growth. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
How is productivity growth measured?
By comparing output per hour between two periods.
What is the cash conversion cycle?
It is DIO plus DSO minus DPO: the days between paying suppliers and collecting from customers.
What is the difference between EBIT and EBITDA?
EBITDA also adds back depreciation and amortization, so it approximates operating cash profit.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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