How to Calculate Billable Utilization Rate
Quick answer Billable utilization = billable hours ÷ total tracked hours × 100. 30 billable / 40 total 75% 32 / 40 80% 36 / 40 90% Billable utilization measures what share of your tracked or available work time is billable to clients. The key is choosing a consistent denominator. Calculate utilization and revenue Open Billable Hours Calculator → Billable utilization formula Billable utilization = billable hours ÷ total tracked hours × 100 Example: 30 billable hours out of 40 30 ÷ 40 × 100 = 75% The remaining 10 hours are non-billable in this simple tracked-hours model. Examples Billable Total tracked Utilization Non-billable 20 h 40 h 50% 20 h 30 h 40 h 75% 10 h 32 h 40 h 80% 8 h 36 h 40 h 90% 4 h Tracked-hours vs. available-hours denominator Some teams divide billable hours by total tracked hours. Others first remove planned exclusions such as PTO or holidays from available capacity. Pick the denominator that matches your organization and keep it consistent whe...