Labor Efficiency Ratio Calculator

Tell me about your business

3 numbers. 60 seconds. A clear picture of your labor productivity, and whether it's healthy.

First Name

Last Name

Email Address

Monthly Revenue

Your total revenue for a typical month

Monthly Direct / Non-Labor Costs

Cost of goods sold, tools, software, subcontractors, materials. Everything except your team

Monthly Total Labor Costs

All wages, salaries, owner's pay, benefits, payroll taxes, and paid contractors

Number of Team Members

Full-time equivalents, including yourself. Used to calculate per-person productivity

Your Labor Efficiency Ratio

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Calculating...

Gross Profit per month

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GP Margin of revenue

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Revenue / Person per month

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Struggling

<1.5:1

Losing money on labor, or barely breaking even. Significant restructuring needed.

Healthy

2:1

You're in the sweet spot. For every dollar in labor, you're generating two in gross profit.

High-Performing

3:1+

Exceptional efficiency. Your team is generating serious returns on investment.

Analyzing your numbers...

The Key Lever

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