Agency Utilization Rate Calculator
Billable hours ÷ available — agency profit lever #1
📚 Learn more — how it works, FAQ & guide Click to expand
Learn more — how it works, FAQ & guide
Click to expand
Agency Utilization Rate Calculator
Billable hours ÷ available hours = utilization. Most agencies hover at 50-60% — but think they\'re at 80%. This tool shows real utilization and what it costs in lost margin.
How to use this tool
- 1
Team capacity
Available hours per FTE per period.
- 2
Billable hours
Actual hours billed to clients.
- 3
See utilization
Per FTE + team. Healthy: 65-75%.
Frequently Asked Questions
What's a healthy utilization rate?
Industry benchmarks: 65-75% billable for production roles. <60% = unprofitable. >85% = burnout territory. Senior/strategic roles lower (40-50% billable, rest is sales + planning).
Why include unbillable time?
Sales calls, training, admin, vacation, sick days are all real time but not billable. Treating them as zero gives unrealistic capacity numbers and over-promised project deadlines.
How does this affect rates?
Lower utilization = need higher hourly rate to break even. 50% util at $100/hr = $50 effective; 75% at $100 = $75 effective. Use Agency Hourly Rate calculator to set your floor.
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