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How to use
- Enter Total work hours.
- Enter Billable utilization %.
- Enter Hourly rate.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Billable hours = total hours × utilization; revenue = billable hours × hourly rate
Example
160 work hours at 70% billable utilization give 112 billable hours; at 100 per hour the theoretical capacity revenue is 11,200.
Important notes
This is theoretical capacity, not guaranteed sales; enough demand, real clients and scheduling are required to fill the billable hours.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Billable hours | 160 × 70 ÷ 100 | 112 |
| Capacity revenue | 112 × 100 | 11,200 |
Frequently asked questions
Should this be used as a sales forecast?
Not directly. It is a capacity-based ceiling; a sales forecast also needs pipeline and conversion assumptions.
Is the result a mandatory client price?
No. It is a planning result from your inputs; final pricing depends on scope, market, contract, taxes and risk.
Should I use monthly or annual figures?
Keep all inputs on the same period so annual income is not mixed with monthly hours or expenses.