Free tool
Utilization rate calculator
Enter a normal week and the year’s time off to see a person’s utilization rate and how many billable hours they can deliver in a year.
How do you calculate utilization rate?
Utilization rate is billable hours divided by available hours, times 100. Available hours are contracted hours minus public holidays and time off, so someone contracted for 40 hours who bills 30 in a normal week runs at 75%, and with 25 days off a year that's 1,410 billable hours.
Updated
Utilization rate
75%
Billable hours ÷ available hours
Billable capacity
1,410 h
Per year · about 118 h a month
| Contracted hours per year | 2,080 h |
|---|---|
| Holidays and time off | − 200 h |
| Available hours | 1,880 h |
| Utilization against contracted hours | 67.8% |
Available hours are your contracted hours (2,080 h, that is 40 h × 52 weeks) minus holidays and time off. Billable capacity is the billable hours you can expect across the weeks actually worked. Measured against contracted hours instead, the same work gives 67.8%, because time off counts as unused capacity.
How the numbers are worked out
- Contracted hours = hours per week × 52.
- Holidays and time off are converted to hours at hours per week ÷ working days per week.
- Available hours = contracted hours − holidays and time off.
- Billable capacity = billable hours per week × the weeks actually worked (available hours ÷ hours per week).
- Utilization rate = billable capacity ÷ available hours × 100.
Which number to use
Firms measure available hours in different ways. Net of time off is the fairer comparison between people and months; against contracted hours the rate is lower, because vacation counts as unused capacity. Pick one method and use it for every report. Our guide on how to calculate utilization rate covers targets by role and the mistakes that skew the number.
See real utilization from your timesheets
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