Billable Utilization Calculator
A simple calculator to understand utilization, capacity, and bench time—plus a clear way to turn the numbers into staffing decisions. Know whether you're leaving money on the table or burning out your team.
What You'll Get
- Google Sheet calculator — Input team size, hours, and rates to see utilization instantly
- Individual + team views — See utilization per person and across the whole team
- Revenue projection — Calculate potential revenue at different utilization targets
- Gap analysis — See the revenue gap between current and target utilization
- Forecast capability — Model what happens when you add or lose team members
Download the Calculator
Get instant access to the utilization calculator in PDF format.
No email required. Free to use and share.
The Formulas (Use Without the Download)
You don't need the spreadsheet to understand utilization. Here are the core calculations:
Billable Utilization Rate
Example: 28 billable hours ÷ 40 available hours = 70% utilization
Available Hours
Non-billable fixed time: meetings, admin, internal projects, PTO. Typically 8-12 hours/week.
Revenue Potential
Example: 160 hours × 75% × $125/hr = $15,000/month potential
Bench Time (Unbilled Hours)
Track this to identify capacity for new work or staffing adjustments.
Utilization vs. Profitability vs. Burnout
High utilization isn't automatically good. Here's the nuance:
65-75% Utilization: The Sweet Spot
Room for internal projects, skill development, and unexpected client needs. Sustainable long-term.
75-85% Utilization: High Performance, High Risk
Profitable but fragile. One sick day or unexpected project expansion and you're scrambling.
85%+ Utilization: Burnout Territory
No buffer for anything. Quality drops, mistakes increase, team turnover rises. Not sustainable.
Below 60% Utilization: Revenue Problem
You're paying for capacity you're not using. Either sell more work or reduce team size.
The Profitability Trap
100% utilization sounds great on paper, but it means zero capacity for:
- • Responding to urgent client requests
- • Business development and proposals
- • Team training and growth
- • Internal improvements and process work
- • Vacation and sick time without project impact
How to Use the Calculator
- 1
Enter your team
List each team member, their role, and their hourly rate.
- 2
Set available hours
Enter weekly hours and subtract non-billable time (meetings, admin, etc.).
- 3
Input actual billable hours
Use real data from last month or quarter. The calculator shows individual and team utilization.
- 4
Set a target
Enter your target utilization (start with 70% if unsure). See the revenue gap.
- 5
Make decisions
Use the gap analysis to decide: sell more work, adjust pricing, or change staffing.
Example: 5-Person Design Team
| Team Member | Rate | Available | Billable | Utilization |
|---|---|---|---|---|
| Creative Director | $200/hr | 120 hrs/mo | 72 hrs | 60% |
| Senior Designer | $150/hr | 140 hrs/mo | 112 hrs | 80% |
| Mid Designer | $110/hr | 140 hrs/mo | 98 hrs | 70% |
| Junior Designer | $75/hr | 150 hrs/mo | 90 hrs | 60% |
| Motion Designer | $130/hr | 140 hrs/mo | 126 hrs | 90% |
| Team Total | — | 690 hrs/mo | 498 hrs | 72% |
Analysis: Team utilization is 72% (healthy), but the Motion Designer at 90% is at burnout risk while Junior is underutilized at 60%. Rebalance by shifting some motion work or hiring to reduce Motion Designer load.
Common Mistakes & How to Avoid Them
Using 40 hours as "available"
Nobody has 40 billable hours. Account for meetings, admin, internal work. Realistic available time is 28-32 hours/week for most roles.
Targeting 100% utilization
Unsustainable and leaves no buffer. Aim for 65-75% and treat anything higher as a temporary sprint, not a goal.
Ignoring role differences
Creative Directors naturally have lower utilization (more meetings, oversight). Account managers may be 40-50%. Designers might be 75-80%. Compare within roles, not across them.
Not tracking consistently
One month's data isn't enough. Track for at least 3 months to see patterns and make real decisions.
How to Run This in Corcava
Skip the spreadsheet and get automatic utilization tracking:
- Time tracking with billable flags — Mark time as billable or non-billable as you log it
- Utilization reports by person and team — See real utilization without manual calculation
- Historical trends — Compare utilization month-over-month to spot patterns
- Project profitability — See if specific projects are running hot or cold on hours
Maps to: Time Tracking, Reports & Analytics features
Frequently Asked Questions
What's a good utilization rate for an agency?
65-75% is the healthy range for most agencies. This leaves buffer for internal work, sales, and unexpected client needs while still being profitable.
Should I count internal projects as billable?
No. Internal projects are important but not billable. Track them separately so you have an accurate picture of revenue-generating time vs. investment time.
How do I calculate utilization for part-time team members?
Use their actual available hours, not 40. A 20-hour/week contractor with 15 billable hours has 75% utilization—same formula, different inputs.
What counts as non-billable time?
Internal meetings, admin (timesheets, expenses), business development, proposals, training, internal projects, company events, and PTO. Anything the client isn't paying for.
How often should I review utilization?
Weekly at the individual level (catch problems early), monthly at the team level (spot trends), quarterly for strategic decisions (hiring, pricing changes).
My utilization is high but revenue is low. What's wrong?
Your rates may be too low, or you're doing unbillable work that you're counting as billable. Audit your time logs and compare against invoices. Also check if you're discounting or eating hours.
Related Templates
Design Rate Card Template
Set the rates that make utilization targets translate into revenue.
Retainer Tracker Template
Track retainer hours to ensure predictable utilization month-over-month.
Time Tracking Feature
Learn how Corcava automates utilization tracking from time entries.
Scope of Work Template
Better scoping = more accurate utilization forecasting.