How utilization is worked out
- Person: billable hours ÷ capacity. Maya, 22 of 32 hours: 68.8%.
- Team: all billable hours ÷ all capacity, so people with more hours weigh more. Here 87 ÷ 112 = 77.7%, not the average of the three rates.
- Gap: target × capacity − billable hours, priced at your average rate. At 80% the team needed 89:36 billable hours and logged 87:00, so 2:36 short, worth 325.00 at 125.00 an hour.
Track it without a spreadsheet
Sumhour works out utilization from the time your team logs: each person’s billable hours against their capacity, from their weekly hours spread over the weekdays with workspace holidays left out. The utilization report shows it per person for any period you pick, beside the margin of every client and project.
Questions
What is billable utilization?
The share of a person’s available hours that was billable work: billable hours ÷ capacity. Someone with 40 hours a week who logged 30 billable hours is at 75%.
What is a good utilization rate for an agency?
There is no single right number: it depends on how much sales, management and internal work each role carries. Set a target per role and watch the trend over weeks rather than chasing one week’s figure. Very high numbers for long stretches usually mean no time for anything but client work.
Should capacity include holidays?
No. Capacity is the hours someone could work in the period, so public holidays and leave come off it. Sumhour spreads each person’s weekly hours over the weekdays and leaves out workspace holidays.
Is anything I type saved or sent?
No. The numbers stay in your browser and are worked out on your device.
Utilization from logged hours, every week. Sumhour tracks time, approves timesheets and reports utilization and margin. Every plan, 30 days free, no card.
Start free trialMore free tools: agency hourly rate calculator, invoice template. Related: utilization and profitability in Sumhour.
