Utilization Rate Calculator

See how much of a consultant's available time was billed, how busy they really were and how far they are from your target. Free, no sign-up, nothing leaves your browser.

Your period

Result

Billable utilization 0%
Total utilization 0%
Available hours 0
Gap to target –
Gap in revenue –

Available hours = weeks × weekly hours − days off × (weekly hours ÷ 5).
Billable utilization = billable hours ÷ available hours.
Total utilization = (billable + non-billable hours) ÷ available hours.

How to Calculate Utilization Rate

The utilization rate is the share of a consultant's available hours that went into client work. Two versions are common:

  • Billable utilization = billable hours ÷ available hours × 100. It shows how much of the time you could sell was actually billed.
  • Total utilization = (billable + non-billable hours) ÷ available hours × 100. It shows how busy someone was, including sales, training and internal work.

Available hours are the hours in the period minus public holidays, vacation and sick days. Leave them in and everyone who took time off looks under-used.

A worked example

A consultant works 40 hours a week. Over 4 weeks with 2 days off, that is 4 × 40 − 2 × 8 = 144 available hours. They billed 108 hours and spent 20 hours on internal work.

  • Billable utilization: 108 ÷ 144 = 75.0%
  • Total utilization: (108 + 20) ÷ 144 = 88.9%
  • With an 80% target, they should have billed 144 × 0.8 = 115.2 hours: a gap of 7.2 hours, or €864 at €120 an hour.

These are the numbers the calculator above starts with. To price the whole month, not just the gap, use the billable hours calculator.

Consulting Cockpit works out utilization and billability for every consultant every month from the hours they track, corrected for weekends, public holidays per country and approved leave. See utilization reporting and billable hours tracking.

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Utilization Rate, Answered

How do I calculate the utilization rate?

Divide billable hours by available hours and multiply by 100. Available hours are the hours in the period minus public holidays, leave and sick days.

What is the difference between billable and total utilization?

Billable utilization counts only the hours a client pays for. Total utilization also counts internal work such as sales, training and admin, so it shows how busy people are rather than how much they bill.

What is a good utilization rate for consultants?

Many consultancies aim for 70 to 80 percent billable utilization. Above that there is little room for sales, training and internal work; well below it, capacity goes unbilled.

Can the utilization rate go above 100 percent?

Yes, when someone bills more hours than they were available, for example through overtime. Treat it as a sign to check the hours or the workload.

Should holidays and leave count as available hours?

No. Take public holidays, vacation and sick days out first, otherwise everyone who took time off looks under-used.

Does Consulting Cockpit calculate this for me?

Yes. It reports utilization and billability per consultant per month from the hours they track, corrected for weekends, public holidays and approved leave, and counts who sits below 70% or above 100%.