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Time Tracking
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Collection Rate Calculator

Harvest helps teams and freelancers track time efficiently, ensuring accurate billing and financial stability without specialized collection rate calculators.

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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.

Streamline Billing with Harvest

See how Harvest simplifies time tracking and billing, even without a dedicated collection calculator.

Harvest time tracking tool interface for billing and collection.

Collection Rate Calculator FAQs

  • A collection rate calculator measures the effectiveness of a business's debt collection efforts by calculating the percentage of billed revenue successfully recovered within a specific period. It's essential for maintaining cash flow and financial stability.

  • To use a collection rate calculator, identify your time period, calculate total payments, adjust total charges by subtracting write-offs, then divide payments by adjusted charges and multiply by 100 to get the collection rate percentage.

  • A good collection rate varies by industry but generally, a Net Collection Rate (NCR) of 95% or higher is ideal. Anything below 92% may indicate revenue leakage and require immediate attention.

  • Tracking collection rates is crucial for understanding financial health. It helps identify inefficiencies in the collection process, ensuring businesses maintain healthy cash flow and minimize revenue leakage.

  • Factors like the age of debts, economic conditions, inefficient follow-up processes, and errors in billing can negatively impact collection rates, making timely and accurate collections crucial.

  • It's recommended to calculate your Net Collection Rate every 90 days or quarterly. Regular monitoring helps identify trends and improve collection strategies.