How to calculate utilization
Compare billable hours with the capacity available.
Enter billable hours
Count hours worked on client projects that can be invoiced.
Enter available hours
Use contracted or scheduled hours for the same period.
Set a target
Choose a realistic target by role and compare the gap in hours.
What does this tool do?
Utilization rate compares billable hours with the hours available to work. It is a core services metric because unused capacity is a cost that cannot be recovered, while unrealistic targets can push people into overtime.
The Formula
Utilization rate = Billable hours ÷ Available hours × 100Frequently Asked Questions
What is the difference between utilization and billability?
Utilization measures billable time against available time. Billability can be narrower, counting only hours actually invoiced to clients, so utilization is often slightly higher.
Should utilization targets be the same for everyone?
No. Delivery staff can sustain higher targets than people with sales, management or training responsibilities. Apply role-specific targets and review them for burnout risk.