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Calculate Realization Rate

Harvest helps firms improve realization rates by providing robust tools for tracking and analyzing project budgets and progress.

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How much revenue is your team leaving on the table?

Most agencies run at 55-60% utilization. Even a small improvement means significant revenue. See what closing the gap looks like for your team.

Number of people who track billable time
$
Blended rate across roles (junior, senior, lead)
55%
Percentage of total hours that are billable. Industry average is 55-60%.
75%
A realistic target for service businesses is 70-80%.
Monthly revenue gap $0
Revenue at current utilization $0/mo
Revenue at target utilization $0/mo
Extra billable hours needed per person/day 0h
Annual revenue opportunity $0

Start tracking team utilization

How this utilization rate calculator works

Utilization is the share of paid working hours that are actually billable, and small gaps add up fast.

  • Utilization rate = billable hours ÷ available hours.
  • Revenue = team size × hours per week × utilization × billing rate.
  • Revenue gap = revenue at your target utilization − revenue at your current rate.

The annual opportunity is that monthly gap carried across the year.

Calculate Realization Rate with Harvest

See how Harvest helps firms calculate realization rates and track project budgets efficiently.

Harvest dashboard showing realization rate calculation for project management.

Calculate Realization Rate FAQs

  • The realization rate is calculated as (Actual Revenue Collected / Billed Revenue) x 100. This shows the percentage of potential revenue that's actually collected.

  • Factors include billing practices, client relationships, and project complexity. Write-offs, discounts, and unbilled hours can lower realization rates.

  • Firms can improve realization rates by using tools like Harvest to track budgets, adopting fixed-fee arrangements, and ensuring accurate, timely billing.

  • A good realization rate varies by industry. For accounting firms, it's around 92.5% for smaller firms and 86.2% for larger ones. Law firms average 88%.

  • Time write-offs reduce realization rates by representing unrecovered revenue. Tracking tools like Harvest help minimize write-offs by ensuring accurate billing.

  • Harvest offers project management tools that track budgets and progress, helping firms understand and improve their realization rates through detailed analysis.

  • Yes, Harvest supports fixed-fee projects and provides insights into potential earnings, aiding firms in strategizing for high realization rates.