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How to use
- Enter Billable hours.
- Enter Total work hours.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Billable utilization = billable hours ÷ total hours × 100
Example
120 billable hours out of 160 total work hours means 75% billable utilization and 40 non-billable hours.
Important notes
Non-billable hours are not necessarily waste; they may include sales, administration and development, so use the ratio for planning rather than judging every hour.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Utilization | 120 ÷ 160 × 100 | 75 % |
| Non-billable hours | 160 − 120 | 40 |
Frequently asked questions
Can utilization exceed 100%?
If billable hours exceed recorded work hours, review your definitions or period because the data is likely inconsistent.
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.