How this number is made
Utilization is the share of available hours you could bill. A week at 28 billable hours out of 40 is 70%. The available hours should already exclude vacation if you are measuring a year, or include it if you are measuring a target against a full week. The billable-rate page turns a target utilization into a price. This page only measures the ratio.
- Available hours are the denominator you mean. Say whether PTO is in it.
- Internal meetings are not billable unless a client is paying for them.
Formula
Utilization = billable hours ÷ available hours.
Worked example
With the figures already in the form, utilization is 70.0%.
Questions
Is 100% the goal?
No. A person with no time to sell, train, or manage will not stay at 100%, and the work will slip. The right number depends on the role.
What about write-offs?
Hours you wrote off were not billed. Leave them out of billable if the question is collected work.