Productivity Formula
There isn’t a single universal productivity equation. Depending on whether you’re tracking units, revenue, labor-hours, or progress against a target, you’ll use a variant of Output ÷ Input. This quick reference summarizes the core options.
Need a quick answer? Use the calculator above. If you’re building a report, start with Output ÷ Input, then choose the input that matches your goal (hours, labor cost, or total cost).
Core Definition
Productivity = Output ÷ Input (time or labor-hours). If you produce 120 units in 10 hours, productivity is 12 units per hour.
The core productivity formula
Start with: Productivity = Output ÷ Input. Output is what you produce. Input is the resource you used (time or cost). The best input depends on what you’re trying to improve.
Labor productivity formula
Labor productivity = Output ÷ Labor Hours (or Output ÷ Labor Cost).
Example: If a team completes 120 units in 40 hours, labor productivity = 120 ÷ 40 = 3 units/hour.
Productivity percentage
If you have a target, use Productivity % = (Actual ÷ Target) × 100.
Example: Actual output 92 vs target 100 → (92 ÷ 100) × 100 = 92%. For more detail, see the productivity percentage guide.
Multifactor productivity (when labor hours isn’t enough)
Multifactor productivity compares output to multiple inputs (often labor + materials + energy). Use it when labor hours stays flat but costs rise, or when material usage is a major driver.
What to use as “output”
- Units produced
- Visits completed
- Tickets closed
- Revenue (when appropriate)
- Standardized ‘points’ (when tasks vary)
Common mistakes (and how to avoid them)
- Changing what “output” means between months → pick a definition and keep it stable.
- Mixing minutes and hours → convert to one unit.
- Ignoring quality → track rework/defects alongside productivity.
Need team-level help? Try the employee productivity calculator or the how-to guide. Therapy teams can also jump to the therapy productivity hub.
FAQ
What is the standard productivity formula?
Productivity = Output ÷ Input. Common inputs are labor hours, labor cost, or total cost.
How do I calculate labor productivity?
Labor productivity typically uses Output ÷ Labor Hours (or Output ÷ Labor Cost). Example: 120 units ÷ 40 hours = 3 units/hour.
What is multifactor productivity?
Multifactor productivity compares output to a combined set of inputs (often labor + materials + energy). It’s useful when labor hours alone don’t explain performance.
Is higher productivity always better?
Not always. Pushing productivity can reduce quality or increase rework. Track quality and throughput together.
How do I turn productivity into a percentage?
Multiply Output ÷ Input by 100, or compare actual productivity against a target baseline and multiply by 100.
Common Variants
- Units per hour: Output units ÷ total hours worked.
- Units per labor-hour: Output units ÷ combined labor-hours across a team.
- Revenue per hour: Revenue ÷ hours worked or billed.
- % productivity vs target: (Actual output ÷ Target output) × 100.
Need help computing percentages? Jump to the Productivity Percentage guide.
Examples Table
| Variant | Inputs | Formula | Result |
|---|---|---|---|
| Units per hour | 240 units, 20 hours | 240 ÷ 20 | 12 units/hour |
| Units per labor-hour | 216 units, 18 labor-hours | 216 ÷ 18 | 12 units/labor-hour |
| Revenue per hour | $9,000 revenue, 150 hours | 9,000 ÷ 150 | $60/hour |
| % productivity vs target | 92 actual units, 100 target | (92 ÷ 100) × 100 | 92% |
Downloadable Formula Card
Related Tools
Run the numbers in context with the main therapy productivity calculator, the step-by-step How to Calculate Productivity guide, or the focused Productivity Percentage explainer.
More therapy tools: Utilization calculator • Caseload calculator • Billing units (minutes→units)