Utilization Rate Calculator
Work out your team's billable utilization and what reaching your target rate would add in revenue each year.
- Free
- No sign-up to try
- Works as you type
Billable utilization
Utilization rate
65.0%
Billable revenue per year
$1,435,200
Revenue per year at your target
$1,656,000
Target revenue minus current revenue
$220,800
- Utilization = billable hours ÷ available hours × 100.
- Billable revenue = people × billable hours × bill rate × working weeks.
- Revenue at target = people × available hours × target × bill rate × working weeks.
Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
How it works
How the Utilization Rate Calculator works
- 1
Enter your numbers
Every result updates as you type, with the formula shown under it.
- 2
Check the method
See how each number is worked out and what it assumes.
- 3
Save it as a Room
Share a live calculator: others can change the numbers and see the result update.
Worked example
What it makes
Example inputs
- People who bill
- 10
- Available hours per person per week
- 40
- Billable hours per person per week
- 26
- Average bill rate per hour
- $120
- Working weeks per year
- 46
- Target utilization
- 75 %
Results
- Utilization rate
- 65.0%
- Billable revenue per year
- $1,435,200
- Revenue per year at your target
- $1,656,000
- Target revenue minus current revenue
- $220,800
How it's calculated
- Utilization = billable hours ÷ available hours × 100.
- Billable revenue = people × billable hours × bill rate × working weeks.
- Revenue at target = people × available hours × target × bill rate × working weeks.
- Assumes: Everyone bills at the same average rate and has the same available hours.
- Assumes: Billed hours are collected in full: write-offs and discounts are not included.
An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
Who it's for
Who uses it
Agency and consultancy leads
Track billable time against a target.
Professional services firms
Put a revenue figure on low utilization.
Resource managers
Test a realistic target before you set it.
Good to know
What to consider
- Very high utilization leaves no time for sales, training or internal work, and tends to burn people out.
- Revenue assumes billed hours are collected in full at the average rate: write-offs and discounts are not included.
Questions
About the Utilization Rate Calculator
Should available hours include holidays?
Use the hours people are expected to work in a normal week, and set the working weeks per year to account for holidays. Be consistent from one month to the next so the rate is comparable.
Can I share the calculator with my team or a client?
Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.
Make your calculator now
Free, no sign-up to try. It becomes a Room you can edit, publish and share.
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