Microeconomics

Productivity Calculator

Divide total output by the labor hours used to find productivity, the value produced per hour worked.

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Output & hours

$

Enter output and labor hours to see productivity.

Worked example

With these example inputs:

  • Total output$500,000
  • Labor hours2,000

Output per hour: $250.00

  • If the first figure were 10% higher$275.00

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Frequently asked questions

How is labor productivity calculated?

Divide total output by the hours worked to produce it. $500,000 of output from 2,000 hours is $250 of output per hour.

Why measure productivity?

Productivity links effort to results. Rising output per hour means the same team is creating more value, which supports higher wages and margins.