Free tool for agencies and studios that bill by the hour
Agency utilization rate and revenue capacity calculator
Utilization = billable hours ÷ available hours. In the example, 5 people with 160 hours each have 800 available hours; 520 billable hours is 65.0%. At $120 an hour that bills $62,400. At a 75% target the team would bill 600 hours, $72,000, so the gap is 80 hours or $9,600.
Last updated 2026-11-12.
- Utilization rate
- Available hours
- Non-billable hours
- Billable revenue
- Revenue at target
- Gap to target
- Revenue at 100% (capacity)
Check the inputs: people, available hours and rate above 0, billable hours not negative, target between 1% and 100%.
Take it with you
Example scenarios
Three sets of example inputs worked through the same formulas as the calculator above. They are illustrations, not averages or statistics.
| Scenario | Inputs | Utilization | Billable revenue | Revenue at target | Gap to target |
|---|---|---|---|---|---|
| Low | 3 people × 150 h, 270 h billable at $90, target 70% | 60.0% | $24,300 | $28,350 | $4,050 |
| Typical | 5 people × 160 h, 520 h billable at $120, target 75% | 65.0% | $62,400 | $72,000 | $9,600 |
| High | 12 people × 160 h, 1,536 h billable at $150, target 80% | 80.0% | $230,400 | $230,400 | $0 |
Method: Available hours = people × available hours per person; utilization = billable hours ÷ available hours; revenue = billable hours × average billing rate; hours to target = available hours × target % − billable hours. Figures checked against the same formulas on 2026-11-12.
How the calculator works
Available hours are the hours your people can work in the period after holidays, sick days and time off. Multiply the number of people by the available hours of one person. Billable hours are the hours you can charge to clients, from your time tracking.
Utilization is billable hours divided by available hours. Billable revenue is billable hours times your average billing rate. The calculator also shows the hours and revenue the team would bill at your target utilization, the gap to that target, and the revenue if every available hour were billed, which is the ceiling, not a goal.
Worked example
A studio has 5 people with 160 available hours each this month, 800 hours in all. They log 520 billable hours, so utilization is 520 ÷ 800 = 65.0%, and 280 hours go to admin, sales, internal work and meetings.
At an average rate of $120 an hour the 520 hours bill $62,400. A 75% target means 600 billable hours and $72,000: 80 more hours, worth $9,600. Billing every available hour would be $96,000.
Choosing the inputs
Use the same period for every number: a month of available hours with a month of billable hours. If you compare people, use each person's own available hours, because a part-time designer and a full-time developer have different capacity. The target is your own choice; owners, sales and account staff usually bill less than delivery staff, so a single team target hides that spread.
If billable hours exceed available hours, utilization goes over 100% and the gap turns negative: the team is working more than the hours you planned for.
What this tool does not do
It works out one period for one team and forgets everything when you close the page. It does not track time, read your timesheets or say what target is right for you; it is arithmetic on your numbers, an estimate, not business advice. Retainersdesk, linked below, tracks client retainers, not team utilization.
Questions
What is the utilization rate formula?
Billable hours divided by available hours, times 100. 520 billable of 800 available hours is 65.0%.
Should available hours include holidays?
No. Take the hours people could work in the period after holidays, sick days and time off, or utilization looks lower than it is.
Does this page store my team's hours?
No. The math runs in your browser; nothing is sent or saved.
Made by Bardach Technologies. We also make Retainersdesk, a separate workspace template for agencies that runs in Notion and shows which client retainer is over, close or on track this month and what is due in the next 7 days (USD 67.99, one-time purchase on Gumroad). Retainersdesk tracks hours against each client's retainer; it does not calculate team utilization. This calculator is free and needs no sign-up; nothing is charged on this page. Get Retainersdesk on Gumroad (USD 67.99)