Use this calculator to determine your team’s utilization rates. With a few simple inputs, it calculates your resource utilization rate and billable utilization rate for you.

How To Calculate Team Utilization

Team Utilization Definition

Utilization rate shows how much of your team’s available time is being spent productively — either on all tracked work (resource utilization) or on client billable work (billable utilization).

It helps you understand if you’re making the most of your team’s available capacity and how much time is actually revenue-generating.

Utilization Rate Formulas

Resource Utilization = (Total hours tracked / Available capacity) × 100

Billable Utilization = (Total billable hours / Available capacity) × 100

Available capacity is the total number of hours your team could have worked during the period — for example, 160 hours for a full-time employee in a 4-week month.

Instructions For The Team Utilization Calculator

Follow these steps to calculate your team’s resource and billable utilization rates:

1. Available capacity (hours): Input the total number of hours your team could have worked during the period (e.g., 160 hours for one full-time employee over 4 weeks).
2. Total hours tracked: Input how many hours were actually tracked during the same period — this includes both billable and non-billable time.
3. Total billable hours: Input only the hours that were billable to clients during the period.

Hit “Calculate” to get your team’s utilization rates.

Scroll down to view the results — resource utilization and billable utilization — in the green box below.

Uses For The Calculator

Why Track Utilization?

Improve Team Efficiency: Spot underutilized resources and redistribute work more effectively.

Forecast Capacity: Use historical utilization rates to estimate future staffing needs.

Increase Profitability: Higher billable utilization means more time spent on revenue-generating work.

Support Hiring Decisions: If utilization is consistently high, it might be time to hire more staff to prevent burnout.

Client Transparency: Understand and report how much of your time is spent on client projects vs internal work.

Related Resources For Work Tracking

Work Hours Calculator

If you want to quickly calculate work hours over any time period, use this calculator.

Other Free Calculators

Here are a few other free calculators we’ve built:

• Headcount & FTE Calculator
• Employee Productivity Calculator
• Time Card Calculator
• Work Days Calculator
• Work Week Calculator

Disclaimer: This calculator is not legal advice. Please consult your HR or legal team to determine the appropriate use for your organization, based on your workforce structure and regional labor laws.