Time, Utilization & Profitability
Utilization Rate
Definition
The percentage of total available hours spent on billable work. Formula: Billable Hours ÷ Available Hours × 100. A designer working 40 hours/week with 28 billable hours has 70% utilization.
Why It Matters
The single most important metric for agency profitability. Healthy is 65-75%. Below 50% means paying people to sit idle. Above 85% means burnout.
Related Terms
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