# Calculate Production Per Hour in Excel

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:

1. Select cell D2 and type in the following formula:
``=C2/(B2*24)``
1. Press the Enter key and double-click or drag down the fill handle to copy the formula down the column.
1. Select range D2:D7.
2. 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.