Small-business finance
Billable utilization
Measure billable capacity and revenue at a supplied billing rate.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
utilization=billable/available; revenue=billable*rate.
Use the same team and time period for both hour totals. Revenue assumes all billable hours are billed at the entered rate.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Billable hours in period (hours): Logged billable hours for the same people/period as available hours.
- Available hours in period (hours): Actual time from logs/calendar/statement, or an explicitly labeled future schedule. Keep the period in available hours in period consistent with all matching costs/outputs.
- Billing rate per hour (selected currency): Matching cost total divided by matching productive/operating hours from invoices, compensation records or logs. Use the field’s exact elapsed/person/machine-hour basis.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Billable utilization is 75.00 % for the illustrative inputs below.
Example inputs
- Billable hours in period: 120.00 hours
- Available hours in period: 160.00 hours
- Billing rate per hour: $100.00
- Billable utilization
- 75.00 %
- Period billable revenue
- $12,000.00
- Unbilled available hours
- 40.00 hours
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Measure billable capacity and revenue at a supplied billing rate.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.