Free tool
Utilization Rate Calculator
Utilization rate tells you how much of your team's available time is billable. Enter your billable and available hours to get it instantly — the formula and a worked example are below.
Utilization rate
75%
Healthy range
Non-billable
40 hrs
Available − billable
Formula
Example: 120 billable ÷ 160 available × 100 = 75%.
How to calculate utilization rate
- 1Count billable hours. Add up the hours you can bill to clients over the period.
- 2Count available hours. Total the capacity for the same period — for example, 160 hours per month per person.
- 3Divide and multiply by 100. Divide billable by available hours and multiply by 100 to get the utilization percentage.
Frequently asked questions
What is a good utilization rate?
It varies by firm, but many agencies and consultancies target 70–85% billable utilization. Above ~85% can signal burnout risk; below 70% may mean under-utilised capacity.
What counts as available hours?
The capacity you are measuring against — often contracted hours minus public holidays and leave. Some firms use total paid hours; others count only the hours intended for client work.
What is the difference between utilization and billability?
Utilization is billable ÷ available hours. Billability (or realization) usually refers to how much of billed time is actually invoiced or collected. This tool calculates utilization.
Related
Track this automatically with Timvora
Stop calculating in spreadsheets — Timvora computes utilization, capacity, and leave from your real timesheet data. Free for up to 5 users.