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Billable Utilization Rate Calculator

See what share of your working hours you actually bill, and what unbilled time costs you.

Your utilization rate
–
Non-billable hours per week–
Revenue per week now–
Revenue per week at target–
Gap per year (48 weeks)–

What is billable utilization?

Utilization is the share of your working time that you can charge a client for. If you work 45 hours in a week and bill 27 of them, your utilization is 60%. The other 18 hours went to emails, proposals, invoicing, marketing, learning and everything else that keeps a business running.

Agencies track this number closely because it drives profit. Freelancers benefit from tracking it too: it explains why a busy week did not turn into a big invoice, and it shows how much extra income is possible by trimming admin or delegating it.

The formula

Utilization % = billable hours ÷ total hours worked × 100
Revenue at target = total hours × target utilization × hourly rate
Yearly gap = (revenue at target − revenue now) × 48 working weeks

Worked example

You work 45 hours a week, bill 27 and charge $80 an hour. Your utilization is 27 ÷ 45 = 60% and you bill $2,160 a week. At a 70% target you would bill 31.5 hours, or $2,520 a week. Over 48 working weeks that gap is worth $17,280.

Ways to improve your utilization

Frequently asked questions

What is a good utilization rate?

For solo freelancers, 60% to 75% is a common healthy range. Going much higher usually leaves too little time for finding new clients and keeping skills current.

Should 100% utilization be the goal?

No. Some non-billable time is essential. A business that never markets itself or improves eventually runs out of work.

Why use 48 weeks for the yearly figure?

It leaves about four weeks for holidays and time off, which is a realistic working year for most people.

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