How to Calculate Productivity
Productivity compares what you produce to the resources it takes—usually output divided by time or labor-hours. Different industries tweak the formula, but this guide walks through the most common version and shows how to adapt it with clear examples.
Use the free calculator above, or follow the quick steps below to compute productivity using output ÷ input. We included real examples and the most common variations (labor productivity and productivity percentage).
The Core Productivity Formula
Productivity = Output ÷ Input (often hours). Example: If a team produced 120 units in 10 hours, productivity = 12 units/hour.
Productivity = Output ÷ Input
Step-by-Step (HowTo)
- Define your output (units, visits, revenue).
- Define your input (hours, labor-hours, cost).
- Choose the right formula variant (units/hour, % vs target).
- Plug in your numbers and compute.
- Compare to your target and decide next actions.
Worked Examples
| Scenario | Output | Input | Productivity |
|---|---|---|---|
| Individual (units/hour) | 36 units | 3 hours | 12 units per hour |
| Team (labor-hours) | 450 units | 40 labor-hours (5 people × 8 hrs) | 11.25 units per labor-hour |
| Percentage vs target | 92 actual units | 100 unit target | 92% productivity |
Need a deeper breakdown of targets? See the Productivity Percentage guide.
Try It: Free Productivity Calculator
Looking for percent comparisons? Use the Productivity Percentage walkthrough or the labor productivity calculator.
FAQ
What is the simplest productivity formula?
The simplest formula is Productivity = Output ÷ Input. Output could be units produced, visits completed, or revenue. Input is usually hours worked, labor cost, or time.
How do I calculate productivity percentage?
Convert Output ÷ Input into a percent by multiplying by 100 (or compare actual to a target baseline and multiply by 100).
What’s the difference between labor productivity and overall productivity?
Labor productivity uses labor hours or labor cost as the input. Overall productivity may include materials, capital, or total cost (often called multifactor productivity).
What inputs should I use if I’m tracking time?
Use consistent time units (minutes or hours). If you track minutes, convert to hours for reporting, or keep everything in minutes—just stay consistent.
Why does my productivity change month to month?
Mix changes (harder work, fewer billable tasks), seasonality, staffing changes, and process variation all affect output and input.