Billable Hours Calculator
Utilisation is what decides whether the business works.
Work out Billable Hours. Utilisation is what decides whether the business works. States the assumption instead of hiding it.
Annual revenue
119,600
1,196 billable hours at 65% utilisation
Utilisation decides whether a professional services business works. Sixty to seventy percent is typical and eighty is exceptional — the remainder goes on selling, admin, training and the hours nobody will pay for. The effective hourly rate is the honest figure. Billing 100 an hour at 65% utilisation means earning 65 for every hour actually worked, which is the number to compare against a salary rather than the headline rate. Pricing that assumes full utilisation guarantees a loss, because the unbillable time still has to be paid for. That is the single commonest reason new consultancies price themselves out of viability.
How the Billable Hours Calculator works
Annual revenue from hours, utilisation and rate, with the effective hourly rate across all hours worked. Sixty to seventy percent utilisation is typical and eighty is exceptional.
Also known as: what utilisation rate is normal · consultant revenue from billable hours · effective hourly rate calculator · how many billable hours a year
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
What is a good utilisation rate?
Sixty to seventy percent for most professional services, and eighty is exceptional. The rest goes on selling, admin, training and the hours nobody will pay for.
What is the effective hourly rate?
Revenue divided by all hours worked, not just billable ones. Billing 100 an hour at 65% utilisation earns 65 for every hour actually worked — that is the figure to compare against a salary.
Why does assuming full utilisation fail?
Because the unbillable time still has to be paid for. Pricing that ignores it guarantees a loss, and it is the commonest reason new consultancies price themselves out of viability.
How many working weeks should I assume?
Around 46 after holiday, public holidays and some allowance for illness. Assuming 52 overstates capacity by about 12% before anything goes wrong.
How do I raise utilisation?
Usually by reducing admin rather than working more hours. Beyond about 80% the remaining unbillable time is selling — which, if cut, means no work next quarter.
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