How to calculate billable utilization
Billable utilization measures what share of worked time is chargeable to clients.
Billable utilization = billable hours ÷ total worked hours × 100
Example
If you work 40 hours and 30 are billable, your utilization is 75%. The remaining 10 hours are non-billable.
Estimated billable revenue
Multiply billable hours by your billable hourly rate. For 30 billable hours at $100 per hour, estimated billable revenue is $3,000.
What counts as non-billable time?
Common examples include internal meetings, training, administration, business development, uncharged project work and other time that is not invoiced to a client.
Utilization targets
There is no universal target that fits every role or business. Managers, consultants, agencies and freelancers may use different targets depending on delivery responsibilities, sales work, management duties and pricing model.
Frequently asked questions
What is the difference between billable hours and worked hours?
Worked hours include all time spent working. Billable hours are the subset that can be charged to a client or project.
Can utilization exceed 100%?
This calculator caps billable hours at total worked hours for the utilization calculation, so utilization does not exceed 100%.
Does this calculate actual collected revenue?
No. It estimates billable value from hours and rate. Actual invoiced or collected revenue can differ because of discounts, write-offs, fixed-fee work and payment status.