Professional services
Billable work realization and collections
Measure how recorded billable value turns into invoices and matched collections.
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
realization = net billed value/recorded billable value; collection = matched receipts/net billed value
Use the same work and invoice cohort, excluding tax and pass-through amounts consistently. These are value-based ratios, not interchangeable with hour-based realizations. Results over100%or negative balances can reflect premiums, overpayments or mismatched records and require review. Use your own records for the same scope and period. Example figures are illustrative, not industry benchmarks. Results exclude income taxes and any cost you have not entered. Check the result before pricing work or committing resources.
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
- Recorded billable value at chosen standard rates (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Net amount invoiced for that work (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Payments applied to those invoices net of refunds (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
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: Value realization rate is 90.00 % for the illustrative inputs below.
Example inputs
- Recorded billable value at chosen standard rates: $10,000.00
- Net amount invoiced for that work: $9,000.00
- Payments applied to those invoices net of refunds: $8,100.00
- Value realization rate
- 90.00 %
- Invoice collection rate
- 90.00 %
- Recorded value converted to collections
- 81.00 %
- Billed balance not yet collected
- $900.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Measure how recorded billable value turns into invoices and matched collections. Inputs come from your own records and stated assumptions; no rates or legal limits are looked up.
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.