Revenue per employee is annual revenue divided by headcount, a rough efficiency metric buyers and lenders use as an early signal of how much a business depends on people versus product or process.
Below roughly $100,000 per employee tends to read as labor-heavy; above $300,000 generally reads as efficient, though the right benchmark varies a lot by industry. A company doing $3M in revenue with 15 employees sits at $200,000 per employee, in between the two.
It's a rough proxy, not a verdict. A services business naturally runs lower than a software company at the same revenue, since the cost structures are fundamentally different. What matters more than hitting an exact benchmark is whether the number is trending up as the company scales, or staying flat while headcount grows just to keep pace with revenue.
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