Billable utilization shows how much of the time you pay for is actually billed to a customer. Enter hours for one technician or a whole team over the same period.
Billable utilization65.0%
Unbilled hours14
Billed labor revenue$3,120.00
Revenue per paid hour$78.00
How it is calculated
- Billable utilization = billable hours ÷ paid hours × 100
- Unbilled hours = paid hours − billable hours
- Revenue per paid hour = (billable hours × billing rate) ÷ paid hours
Worked example
With the starting values shown in the calculator:
- Billable hours: 26
- Paid hours: 40
- Billing rate per hour: $120.00
- Billable utilization: 65.0%
- Unbilled hours: 14
- Billed labor revenue: $3,120.00
- Revenue per paid hour: $78.00
Using the result
Unbilled time includes driving, parts runs, training, callbacks and waiting. No service business reaches 100 percent. The useful question is whether your billing rate is high enough to carry the unbilled hours. Revenue per paid hour answers that directly.
This calculator gives an estimate for planning. See the calculator disclaimer.
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