In this section, we will cover how to calculate the production per hour in Excel.

The production per hour is a measure that tells us how much work is done in an hour of time. It is calculated by dividing the total number of units produced by the total hours worked.

## Calculate production per hour

We use the following dataset showing the production of employees in our illustration:

We use the following steps:

- Select cell
**D2**and type in the following formula:

`=C2/(B2*24)`

- Press the
**Enter**key and double-click or drag down the**fill handle**to copy the formula down the column.

- Select range
**D2:D7**. - Click
**Home >> Number >> Number Format Arrow >> Number**.

The values in the range **D2:D7 **are now displayed in **Number** format:

### Explanation of the formula

`=C2/(B2*24)`

**(B2*24)**The time in cell B2 is multiplied by 24 to convert it to a decimal value. This is because in Excel time is represented as a fraction of a 24-hour day. Time is internally stored as a decimal number where 1 represents 24 hours. An hour is a one-twenty-fourth of a day, and its serial number is 0.0416667.- The serial number of the time 3:50 in cell B2 is 0.159722.
**Tip:**First divide the 50 minutes by 60 to convert them to a decimal. Then divide the 3 hours and the decimal by 24. **=C2/(B2*24)**becomes**=60/(0.159722*24)**. The result is**16.65**shown in cell**D2**.

## Conclusion

Excel stores time as a decimal number where 1 represents 24 hours. Every hour is stored as a fraction of 1. This knowledge is essential in calculating production per hour in Excel.