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How to Calculate Employee Utilization

Harvest transforms how teams manage time and resources by precisely tracking employee utilization, enhancing profitability and project efficiency.

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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.

Track Employee Utilization with Harvest

See how Harvest tracks employee utilization, offering insights to enhance project efficiency and profitability.

Harvest dashboard displaying employee utilization tracking and insights.

How to Calculate Employee Utilization FAQs

  • To calculate employee utilization, use the formula: (Billable Hours / Total Available Hours) x 100. This gives you the percentage of time spent on billable tasks.

  • Billable hours contribute directly to revenue, while non-billable hours do not. A higher proportion of non-billable hours can lower utilization rates and impact profitability.

  • Good utilization rates vary by industry. Professional services aim for 70-85%, law firms target 85-95%, and creative agencies often find 60-80% optimal.

  • Effective tracking requires precise time logging and detailed reporting. Harvest provides tools to track both billable and non-billable hours, offering comprehensive insights.

  • Strategies include setting clear goals, streamlining processes, and using technology like Harvest for real-time tracking and insights to enhance workforce efficiency.

  • Harvest integrates with tools like Asana, Trello, and Slack, facilitating seamless project management and enhancing employee utilization tracking.

  • Yes, Harvest helps manage workloads by providing insights into time distribution, allowing managers to balance tasks and prevent employee burnout.

  • Harvest allows you to set project budgets and alerts, ensuring projects stay within scope and resources are optimally allocated, enhancing utilization.