Agency Utilization Calculator
Calculate agency utilization, billable and non-billable hours, annual capacity, and the hours required to reach a target utilization rate.
What this tool can do
Calculate annual team capacity. Measure billable utilization. Show non-billable time. Calculate the hours needed to reach a utilization target.
Formula and methodology
Utilization = annual billable hours ÷ annual available team hours × 100.
Worked example
Five people working 40 hours for 48 weeks provide 9,600 available hours. At 140 billable hours per week across the team, utilization is 70% and the gap to a 75% target is 480 annual hours.
Use total team billable hours
Enter the billable hours produced by the whole team each week. The calculator compares that total with team members multiplied by weekly hours.
Exclude unavailable time consistently
Working weeks can account for holidays, planned leave, and shutdown periods. Use the same availability policy when comparing periods or teams.
Do not maximize utilization blindly
Sales, management, learning, quality review, and internal improvement are necessary non-billable work. A higher utilization rate is not automatically healthier or more profitable.
Connect utilization with margin
Review billable utilization together with pricing, write-offs, direct costs, and project margin. Utilization without profitable pricing can still produce weak results.
Privacy
Calculations and draft documents run in your browser. Entered values are not included in FollowIncome analytics events.
Next step
Use the result as a planning aid, then track actual invoices, payments, expenses and projects in FollowIncome.
Frequently asked questions
How is agency utilization calculated?
Divide billable hours by available team hours for the same period and multiply by 100.
What is a good utilization rate?
There is no universal target. The appropriate rate depends on roles, pricing, sales activity, management work, quality requirements, and team health.
Should leave be included in available hours?
Use working weeks or another consistent availability adjustment so leave and shutdowns do not distort comparisons.
Does utilization equal profitability?
No. Profitability also depends on price, internal cost, direct expenses, scope control, and whether billed work is collected.
Related guides and tools
Agency capacity, clients, and retainers
Connect billable capacity with the profitability of client relationships and recurring retainers.
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