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How to use
- Enter Revenue target.
- Enter Hourly rate.
- Enter Total available work hours.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Required billable hours = target ÷ rate; utilization = required hours ÷ total hours × 100
Example
A 120,000 target at 100 per hour needs 1,200 billable hours; out of 1,800 available work hours that requires 66.67% utilization.
Important notes
If required utilization exceeds 100%, the target is not achievable with the entered hours and rate alone; raise the rate, add capacity or lower the target.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Required billable hours | 120000 ÷ 100 | 1,200 |
| Required utilization | 1200 ÷ 1800 × 100 | 66.666667 % |
Frequently asked questions
Must utilization be the same all year?
Not necessarily. Seasonality can vary; what matters is that the annual average and cash plan support the target realistically.
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.