# Multifactor Productivity Calculator

Instructions: You can use this Multifactor Productivity Calculator, by providing the number of units produced, and the dollar value of all inputs used, specifying the name of the resource used (Use only the boxes that you need, leave empty the ones that you don't use):

Units Produced =
Factor Name 1
Dollar Value
Factor Name 2
Dollar Value
Factor Name 3
Dollar Value
Factor Name 4
Dollar Value
Factor Name 5
Dollar Value

## Multifactor Productivity Calculator

More about Multi Factor Productivity so you can better understand the results provided by this solver.

## What is the formula for productivity?

Productivity refers to how much output you get from an input. When analyzing one specific factor, we use the following productivity formula:

$\text{Factor Productivity} = \displaystyle \frac{\text{Output Produced}}{\text{Units of Input}}$

## How do I calculate multifactor productivity?

The above formula can be extended to more than one factor, with the need to having all the inputs with a common unit.

The idea behind multifactor productivity is to compute how many units of output will one dollar of cost of all factors of input produce. For example, if a process takes labor, material, energy, capital and miscellaneous expenses, the multifactor productivity is

$\text{Factor Productivity} = \displaystyle \frac{\text{Output Produced}}{\text{Labor + Material + Energy + Capital + Miscellaneous}}$

### Can you Compute the Productivity of One Factor only?

If you want to compute the productivity one factor only, please try instead this single factor productivity calculator .

One interesting difference between multifactor and one factor productivity is that one factor productivity is usually measured in a specific unit associated to the factor. For example, labor productivity is usually measured as units of output per hour.

Or for example when measuring capital productivity we measured it in units produced per dollar. When dealing when multifactor productivity, (MFP) since all factors analyzed may be measured in different units, it is necessary to put them all in a common unit (dollars typically).