About

The Sales Per Hour (SPH) Calculator is a vital tool for the retail and service industries, designed to measure the efficiency and productivity of sales personnel. By correlating total revenue generated with the specific amount of time invested, SPH provides a clear snapshot of performance that raw sales figures often miss.

For sales associates, this metric highlights personal earning potential and efficiency. For managers and business owners, it serves as a critical Key Performance Indicator (KPI) for scheduling, training identification, and setting equitable sales targets. Whether you are analyzing a single shift, a weekly roster, or a seasonal campaign, accurate SPH calculation is the first step toward optimizing revenue.

Formulas

The calculation for Sales Per Hour is straightforward but powerful. It represents the average revenue generated for every hour of labor.

SPH = Total Sales Revenue / Total Hours Worked

For example, if an associate sells $1,200 worth of merchandise in an 8 hour shift, the calculation is 1200 / 8, resulting in an SPH of $150.

Reference Data

Performance Tier	Typical SPH Range (Retail)	Managerial Action
Entry / Training	$0 - $80	Focus on product knowledge and closing techniques.
Average Performer	$80 - $150	Encourage up-selling and cross-selling strategies.
High Performer	$150 - $300	Analyze techniques for team sharing; consider leadership roles.
Top Producer	$300+	Retention focus; bonus incentives and advanced responsibilities.

Frequently Asked Questions

Typically, SPH is calculated based on Net Sales (excluding tax) because taxes are pass-through collections and not indicative of sales performance. However, verify with your specific company policy as some internal reports may use Gross Sales.

In most sophisticated retail systems, returns are deducted from your total sales for the period in which the return occurred or was processed. A high volume of returns will negatively impact your SPH, incentivizing quality selling over quantity.

SPH measures efficiency, not total volume. If you work longer hours but traffic is low or conversion is poor during those extra hours, your average Sales Per Hour will decrease. This is why scheduling high-performers during peak hours is a common strategy.

For a true measure of sales floor efficiency, only hours spent on the floor (selling time) should be counted. However, for payroll efficiency calculations (Labor Cost vs. Sales), managers often include total clocked hours, including stockroom or administrative time.