Total Factor Productivity Calculator

Total Factor Productivity Calculator calculator can be used to measure the efficiency of production by comparing output to a composite of inputs such as labor and capital.

Input Parameters

Calculation Results

Calculation Formula

TFP = Output / (Labor Input + Capital Input)

Where:
TFP: Total Factor Productivity
Output: Total output produced
Labor Input: Total labor input used
Capital Input: Total capital input used

Total Factor Productivity Calculator Usage Guide

Learn how to use the Total Factor Productivity Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the total output produced (e.g., units produced).
  2. Enter the total labor input used (e.g., number of workers).
  3. Enter the total capital input used (e.g., machinery value).
  4. Click the "Calculate" button to compute the Total Factor Productivity (TFP).
  5. The result will be displayed in the TFP field.

Understanding the Formula

Total Factor Productivity (TFP) is calculated by dividing the total output by the sum of labor and capital inputs. This measure helps in understanding the efficiency of production by comparing the output to the inputs used.

For example, if a factory produces 100 units with 10 workers and 20 units of machinery, the TFP would be calculated as follows:

TFP = 100 / (10 + 20) = 100 / 30 ≈ 3.33

This means that each unit of composite input (labor + capital) produces approximately 3.33 units of output.