How does Opagio's Productivity Calculator work?
Short Answer
The calculator uses growth accounting methodology to decompose your revenue and GVA growth into contributions from labour, capital, and Total Factor Productivity (TFP).
Full Explanation
Opagio's Productivity Calculator applies growth accounting — the same framework used by the OECD and national statistics offices — at the individual company level. You input your revenue, intermediate purchases, labour costs, headcount, and capital expenditure. The calculator first computes your Gross Value Added (GVA = Revenue minus Purchases), then decomposes GVA growth into three sources: the labour contribution (changes in headcount and compensation), the capital contribution (changes in capital stock), and the TFP residual (the productivity growth that cannot be explained by input changes). A positive TFP indicates your business is becoming more efficient — generating more output per unit of input — which typically reflects the value of your intangible assets at work. The calculator also models EBITDA and allows scenario analysis: you can adjust inputs to see how different hiring, spending, or investment decisions would affect your productivity metrics. It's completely free to use with no sign-up required.
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