Utilization Rate Calculator
Billable hours as a share of available hours.
What this calculator does
Division of the two hour counts entered. No target utilisation and no industry average is shown.
Inputs and what they mean
- Billable hours
- — number value.
- Available hours
- — Hours the person was available to work..
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
Utilisation = Billable hours ÷ Available hours × 100
Worked example
1,400 billable hours out of 1,840 available
Utilisation is only ever the ratio of the two figures you enter.
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
A ratio of two hour counts, expressed as a percentage.
The question it answers: What share of our available hours is actually billable?
The formula
Utilisation = Billable hours ÷ Available hours × 100
- Hb — Billable hours
- (h). Hours charged to clients.
- Ha — Available hours
- (h). Hours the person was available to work.
Units: 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 two hour counts entered. No target utilisation and no industry average is shown.
Assumptions built into the result
- Mathematical: Both hour counts cover the same period and the same person or team.
Figures this calculator will never guess for you
- No benchmark or target utilisation rate is supplied.
Limitations
- A high utilisation rate says nothing about whether the hours were billed profitably or collected.
Source and version
- Standard or reference
- Capacity utilisation (Institute of Management Accountants, Statements on Management Accounting — measuring the cost of capacity (utilised versus idle capacity).)
- 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
- The result is a ratio or index, so it does not depend on currency.
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