DailyCalcNest

Billable Utilization Calculator

Find out what share of your working time gets billed and how much revenue a higher utilization rate would add.

For the period, including admin and sales.

The share of your hours you would like to bill.

Your results

Your utilization
60%
Billed revenue
$7,200.00
Revenue at target
$8,400.00
Revenue gap to target
$1,200.00
Extra billable hours needed
16 hours

The calculator opens with example values; type over them. Results update as you type and stay in your browser.

Why utilization is worth tracking

Utilization connects your time to your income. Two freelancers with the same rate can earn very different amounts, simply because one bills 50% of their hours and the other 75%. It is also an early warning: if the figure falls for a few weeks, invoices will shrink a month or two later.

100% is not a sensible goal for anyone who runs their own business. Marketing, bookkeeping and skill-building are what keep future work coming. Choose a target that leaves room for them, and base it on your own records.

The formulas

Utilization

Utilization % = Billable hours ÷ Total hours × 100

Revenue gap

Gap = ((Total hours × Target % ÷ 100) − Billable hours) × Rate

Worked example

A bookkeeper worked 160 hours this month, billed 96 of them at $75, and wants to reach 70% utilization.

  1. Utilization: 96 ÷ 160 = 60%.
  2. Billed revenue: 96 × $75 = $7,200.00.
  3. Hours at target: 160 × 70% = 112, or 16 hours more than billed.
  4. Revenue at target: $8,400.00, a gap of $1,200.00.

Ways to raise your number

  • Batch admin into set blocks rather than scattering it through the week.
  • Reduce small unbilled favors. Track quick calls and "one small tweak" requests, then decide which should be billed.
  • Use templates for proposals, contracts and invoices to save time on repeat tasks.
  • Raise your rate instead. Sometimes a higher rate at the same utilization is the easier path. See the price increase calculator.

Frequently asked questions

What is a good utilization rate?

It depends on your role. A solo owner doing their own sales and admin will be lower than an employee at a large firm who has support staff for those tasks. Use the rate your income target requires, which the hourly rate calculator can help you find.

What counts as billable time?

Time you can charge to a client under your agreement. Unpaid proposals, internal admin and learning normally do not count, even when they are necessary.

What should I use for total hours?

Use actual hours worked, if you track them. If you do not, your standard working hours are a reasonable starting estimate, though overtime will make your true rate lower.

What if I work on fixed-price projects?

Count hours spent on project work as billable, and use the effective hourly rate calculator to find what those hours actually earned.