Realization Rate Calculator
How much of the standard value of work was actually billed.
What this calculator does
Division of the billed amount by the standard value of the hours entered. No standard rate is supplied by the platform.
Inputs and what they mean
- Currency
- — Amounts are shown in the currency you pick. No exchange rate is applied..
- Hours worked
- — number value.
- Standard rate per hour
- — number value.
- Amount actually billed
- — number value.
How to use it
- Enter your own figures — the calculator never fills in a rate, price or benchmark for you.
- Press Calculate to see the result.
- Read the formula, variables, assumptions and source below the result before you rely on it.
Formula
Realisation = Amount billed ÷ (Hours worked × Standard rate) × 100
Worked example
100 hours at a $150 standard rate, $12,000 billed
Shows the write-off between standard value and the invoice.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
Results depend entirely on the figures you enter and are rounded for display. They are for general information and education, not professional advice.
Reference: IMA — Statements on Management Accounting — measuring the cost of capacity
Last reviewed:
Common questions
Formula, source and verification
The invoice is compared with the standard value of the time recorded.
The question it answers: How much of what we could have charged did we actually invoice?
The formula
Realisation = Amount billed ÷ (Hours worked × Standard rate) × 100
- A — Amount billed
- (currency). Value actually invoiced.
- H — Hours worked
- (h). Time recorded on the work.
- r — Standard rate
- (currency/h). Rate card rate for the work.
Units: Currency; hours; percentage.
What kind of calculation this is
Deterministic formula. The same inputs always give the same answer. The maths is fixed and does not depend on judgement.
Method
Division of the billed amount by the standard value of the hours entered. No standard rate is supplied by the platform.
Assumptions built into the result
- Statistical: The standard rate entered is the rate the firm would normally charge for this work.
Figures this calculator will never guess for you
- No target realisation and no market rate is inserted.
Limitations
- Realisation is not collection: an invoice may still go unpaid.
Source and version
- Standard or reference
- Realisation of standard value (Institute of Management Accountants, Statements on Management Accounting — measuring the cost of capacity (standard value of resources used).)
- Published source
- IMA — Statements on Management Accounting
- Formula version
- Version 1
- Verification
- Reviewed against the cited source on
- How much weight the source carries
- Standards or government
- Applies to
- Currency
- Amounts stay in the currency you choose; no exchange rate is applied.
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