⏱️Utilization Rate Calculator

About this tool

Add each person with their billable hours per week, available hours per week and bill rate. The tool shows each person's utilization (highlighted if below target), the team rate, billable revenue per week and per year, the effective rate across all available hours, and how many more billable hours a week it would take to hit your target. Nothing is stored.

How utilization rate works

Utilization rate = billable hours ÷ available hours × 100. Professional services firms such as agencies, consultancies, law and accounting practices and IT services track it because billable time is what pays the bills. In the example, three people bill 32, 24 and 30 hours out of 37.5 available each week. That's 86 of 112.5 hours, or 76.4%, just above a 75% target. At their bill rates it earns £8,380 a week, about £385,000 over 46 working weeks. Spread across every available hour, that's an effective rate of £74.49. Ben, at 64%, is below target, which could mean too little client work, too much internal work or time not being logged. "Available hours" should be contracted hours minus holidays and public holidays. Some firms use total hours worked instead, which lowers the rate. Targets depend on the role: 70–85% is common for client-facing staff, lower for managers who sell and lead, and 100% is neither realistic nor healthy, because training, admin and business development matter too. Pair utilization with realisation (how much billable time actually gets invoiced) and profit margin. Honest limits: high utilization at low rates can still lose money. The time tracker, the FTE calculator and the freelance rate calculator are related.

Frequently asked questions