How utilization rate calculator works
Utilization rate measures how much of a team's available working time is actually billed to clients. It is billable hours divided by total working hours, expressed as a percentage. A consultant who logs 1,180 billable hours out of 1,600 available in a quarter runs at 73.75% utilization — the rest went to proposals, internal meetings, training and admin.
The percentage alone hides money, so the calculator also prices it. With an hourly rate it returns billable revenue (billable hours × rate), revenue per total hour — your true blended yield across every working hour — and revenue left on the table: the hours that were worked but not billed, valued at your rate.
Utilization is a lever, not a grade. Raising it means either billing more of the same hours or cutting the non-billable work that hides inside every services business. Compare the utilization rate against your firm's target and use the revenue figures to quantify exactly what closing the gap is worth.