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Billable Utilization Rate Calculator

Work out what share of your available hours actually bills, see it against the 2026 agency benchmark, and how much revenue your idle capacity is worth.

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Your numbers

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Billable utilization--
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Healthy: 65-85% for delivery staff
Capacity to an 80% target--
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What reaching 80% is worth

How it is calculated

Formula: Utilization rate = billable hours / available hours x 100

Available hours are the hours a person can realistically work after holidays, PTO, sick time, and unavoidable admin. Utilization is the share of those hours that goes to billable client work, so it shows how much of the capacity you pay for actually earns money.

Delivery and production staff typically run about 65 to 85% on an annual basis. Whole-agency utilization, counting non-delivery roles, is usually lower at 50 to 60%. Sustained readings above roughly 80 to 85% signal understaffing or burnout, not efficiency.

Track utilization automatically

AgencyKit turns time tracking into live utilization, margin, and per-client profitability, so you see the leak before the month closes.

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Frequently asked questions

What is a good billable utilization rate?

Delivery and production staff typically target about 65 to 85% billable utilization on an annual basis, or 75 to 90% in a strong week. Whole-agency utilization, including non-delivery roles, usually runs 50 to 60%. Above 80 to 85% sustained signals burnout, not efficiency.

How do you calculate utilization rate?

Utilization rate is billable hours divided by available hours, times 100. Available hours are the schedulable hours left after holidays, PTO, and admin. If someone bills 28 of 40 available hours, utilization is 70%.

Why is my utilization low?

Common causes are too much non-billable admin, gaps between projects, over-hiring ahead of demand, or simply not recording all billable time. Compare delivery staff separately from account and management roles, which naturally bill less.

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