Calculate billable utilization rate with target tracking, capacity analysis, and revenue per employee metrics.
Utilization answers one question: of the hours an employee is paid for, how many do clients actually pay for. Enter billable hours and available hours, and the calculator returns the utilization rate, the percentage-point gap to your target, and what those hours are worth in billable revenue at your billing rate. The thing users most often get wrong is the denominator: available hours is a choice, not a fact. Against 2,080 hours, a worker logging 1,664 billable hours shows 80%; exclude holidays and PTO and the same person reads 85% or higher. Entries stay in the browser; nothing is uploaded.
A concrete input and expected output from the current implementation.
Input
Billable hours: 1,664 | Available hours: 2,080 | Billing rate: $140/hr | Target utilization: 75%
Expected output
Utilization rate: 80.0% (1,664 / 2,080). Target: 75% - exceeded by 5.0 percentage points. Billable revenue: $232,960 (1,664 hours x $140/hr). Slack capacity: 416 hours. Revenue per employee (1 employee): $232,960.
Utilization is billable hours divided by available hours (1,664 / 2,080 = 0.80), which clears the 75% target by 5 points. Revenue is billable hours times the billing rate (1,664 x 140 = 232,960), and with a single employee, revenue per employee equals that revenue.
The utilization rate is billable hours divided by available hours, shown as a percentage. Target tracking subtracts the target rate from the actual rate: a positive gap means utilization beats the target, a negative gap is the shortfall. Keep the denominator fixed across employees or periods, otherwise you are comparing different measures.
Billable revenue is billable hours times the billing rate, so each percentage point of utilization is worth (available hours / 100) times the rate per year. Revenue per employee divides revenue by headcount. Capacity analysis compares billable hours with total available hours, so the remaining slack appears as hours that could absorb additional work.
There is no universal figure. Professional-services firms commonly set billable targets from roughly 70% to 85%, but the right number depends on the denominator and on how much internal work the role carries; a sales-heavy partner and a junior biller will not share a target. The more useful check is your own: the gap figure tells you whether this period hit or missed the target you entered.
Only if your firm bills them. The calculator counts what you enter as billable hours, so training, admin, and business development normally stay out, making utilization lower than a broader productivity measure. Many firms track both numbers separately: utilization for billing, productivity for everything productive, and the two are not interchangeable in a revenue calculation.
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