Compare output efficiency between two distinct periods.
Period 1 (Base Period)
Total units, revenue, or value generated
Total hours, employees, or cost
Period 2 (Current Period)
Productivity Growth Rate
0.00%
Period 1 Productivity0.00Output/Input
Period 2 Productivity0.00Output/Input
Change in Efficiency0.00Index Points
function calculateProductivityGrowth() {
// Get Input Values
var p1Out = parseFloat(document.getElementById('p1Output').value);
var p1In = parseFloat(document.getElementById('p1Input').value);
var p2Out = parseFloat(document.getElementById('p2Output').value);
var p2In = parseFloat(document.getElementById('p2Input').value);
// Validation
if (isNaN(p1Out) || isNaN(p1In) || isNaN(p2Out) || isNaN(p2In)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (p1In === 0 || p2In === 0) {
alert("Input values cannot be zero (division by zero error).");
return;
}
// Calculate Base Productivities
var productivity1 = p1Out / p1In;
var productivity2 = p2Out / p2In;
// Calculate Growth Rate Formula: ((P2 – P1) / P1) * 100
var growthRate = ((productivity2 – productivity1) / productivity1) * 100;
// Display Results
var resultDiv = document.getElementById('result-box');
var resultText = document.getElementById('finalResult');
var p1Display = document.getElementById('p1Score');
var p2Display = document.getElementById('p2Score');
var diffDisplay = document.getElementById('efficiencyChange');
resultDiv.style.display = 'block';
// Formatting
p1Display.innerHTML = productivity1.toFixed(3);
p2Display.innerHTML = productivity2.toFixed(3);
diffDisplay.innerHTML = (productivity2 – productivity1).toFixed(3);
if (growthRate > 0) {
resultText.innerHTML = "+" + growthRate.toFixed(2) + "%";
resultText.className = "result-highlight";
diffDisplay.style.color = "#28a745";
} else if (growthRate < 0) {
resultText.innerHTML = growthRate.toFixed(2) + "%";
resultText.className = "result-highlight result-negative";
diffDisplay.style.color = "#dc3545";
} else {
resultText.innerHTML = "0.00%";
resultText.className = "result-highlight";
diffDisplay.style.color = "#555";
}
}
How to Calculate Productivity Growth Rate
In business economics and operational management, understanding productivity growth rate is essential for evaluating the efficiency of a production process over time. Unlike simple output metrics, productivity measures how well you utilize your resources (inputs) to create value (outputs).
This calculator helps business owners, managers, and students determine the percentage change in efficiency between two distinct time periods, such as year-over-year or quarter-over-quarter.
The Productivity Growth Formula
To calculate the growth rate, you must first determine the productivity for each period separately, and then calculate the percentage change between them.
Output: The total quantity of goods produced or revenue generated.
Input: The resources consumed, such as labor hours, number of employees, or raw material costs.
Step-by-Step Calculation Example
Let's look at a realistic manufacturing example to understand how the math works.
Period 1 (Last Year):
A factory produced 10,000 widgets using 500 labor hours. Productivity 1 = 10,000 / 500 = 20 widgets per hour.
Period 2 (This Year):
The factory produced 12,000 widgets using 480 labor hours (thanks to better machinery). Productivity 2 = 12,000 / 480 = 25 widgets per hour.
In this example, the company achieved a 25% increase in productivity, meaning they are generating significantly more output for every hour of labor invested.
Why Tracking Productivity Matters
Monitoring this metric allows organizations to:
Identify Bottlenecks: If the growth rate is negative, it indicates that resource usage is outpacing production.
Evaluate Investments: Determine if new software or machinery actually improved efficiency.
Plan Capacity: Understand how much input is required to meet future output targets.
Set Benchmarks: Compare performance against industry standards or historical data.
Labor Productivity vs. Multifactor Productivity
While the calculator above is flexible, productivity is often categorized in two ways:
Partial Factor Productivity (Labor): Measures output per single input (e.g., Units per Man-Hour). This is the most common use case.
Multifactor Productivity (MFP): Measures output against a bundle of inputs (Labor + Capital + Materials). To calculate this, convert all inputs into a common unit (usually currency) before entering them into the "Input" fields above.