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Agency utilization rate calculator

Utilization rate is billable hours divided by available hours: 26 billable hours in a 40-hour week is 65%. This calculator works it out, turns five more points into money collected after your realization rate, and reads the result against SPI Research's benchmarks for professional services firms, not agencies [1][2].

By Naman Jaiswal, Founder of RevSmith · Updated

Chapters · 5

How the agency utilization rate calculator works

It belongs to our agency profitability guide.

Utilization rate calculator

Enter your team’s weekly hours and rate to see your billable utilization, what that billable time is worth and collects each month, and what five more points of utilization would add in a year.

Count only billable producers, or the whole team for a blended rate.

hours

40, or fewer once holidays, leave and fixed internal time come off. This choice moves the result by several points.

hours

Hours logged to client work you can bill.

%

The share of billable value that is invoiced and collected. 90% is an example, not a benchmark.

USD

Changes the symbol only. Amounts are not converted.

Billable utilization65%26 of 40 available hours a week
Billable value per month$112,6671,127 billable hours at your rate
Collected value per month$101,400$1,216,800 a year
Five more points of utilization, per year$93,6002 more billable hours a person a week, collected at 90%
Your billable utilization next to SPI Research’s figures for professional services firms, 2025
BenchmarkBillable utilizationYour rate
Average billable utilization, 202566.4%1.4 points below
SPI Research’s high-performer average, 202575%10 points below

How it is worked out. Billable utilization = billable hours logged ÷ available hours. Billable value per month = people × billable hours a week × rate × 52 ÷ 12. Collected value = billable value × realization rate. Five more points of utilization means 5% of the available hours as more billable hours a person a week, never past 100%; their value for a year = those hours × people × rate × 52 × realization rate.

SPI Research’s figures describe professional services firms, not agencies. Their average of 66.4% for 2025 is the lowest in the 19 years SPI Research has run the benchmark, down from 68.9% for 2024 in the previous edition. SPI Research’s high performers averaged 75% in 2025: an average of the best firms, not a target. SPI Research’s own research found that utilization between 70% and 80% went with the highest profitability, and above 80% with more burnout and attrition. Close to 100% leaves no time for the non-billable work that keeps clients. Sources: SPI Research, 2026 Professional Services Maturity Benchmark (figures for 2025; sample: 509 professional services organizations worldwide, 245,000+ consultants; population: Professional services firms such as IT services and consulting, not agencies), and The Truth About Billable Utilization (2025; SPI’s benchmark surveys over several years).

The figures filled in are examples, not benchmarks: replace them with your own. Everything is worked out in your browser, and nothing you type is stored or sent.

From people, weekly hours, rate and realization, it works out:

  • utilization = billable ÷ available;
  • billable value per month = people × billable hours × rate × 52 ÷ 12;
  • collected value = billable value × realization;
  • the yearly value of five more points = people × 5% of available hours × rate × 52 × realization.

It sets your utilization beside SPI's 2025 average (66.4%) and high-performer average (75.0%), labeled as professional services firms. It runs in your browser, stores and sends nothing, formats currency without converting, and its defaults are examples.

Next · 02Billable vs available hours: what to count

Billable vs available hours: what to count

Billable means hours a client pays for under the contract; available means hours a person can work after holidays, leave and sick days.

  • Billable: time-and-materials client work, and retainer work inside what was sold; the fee then sets your realization.
  • Not billable: pitches, internal meetings, training and uncharged extras. Log them anyway; they explain realization.
  • People: count only those who bill; measure owners and operations staff separately.
  • Available hours: enter both numbers as averages over all 52 weeks. With six weeks off, a 40-hour week averages 40 × 46 ÷ 52 = 35.4 available hours, so 26 billable is 73.5%, not 65%.
Next · 03Is your agency utilization rate good?

Is your agency utilization rate good?

We found no agency benchmark with a published sample, so compare with SPI Research's 509 professional services firms worldwide, such as IT services and consulting [1].

  • 66.4% was their 2025 average and 75.0% their high performers' [1]. Summaries call 75% "optimal" or 70% the healthy minimum; treat 75% as an average, not a target.
  • 70% to 80% is the band SPI tied to the highest profitability; above 80%, burnout and attrition rise [2].
  • The SPI summaries we found do not say how its firms count available hours; a few points either way is noise.

Every source is in our agency margin and utilization benchmarks.

Next · 04What five more points are worth after realization

What five more points are worth after realization

Extra points pay only when a client buys the extra hours, and only the share you collect.

On a fixed retainer, more hours on the same fee earn nothing and lower realization; our revenue leakage audit finds where that money goes.

Next · 05Where RevSmith fits (and where it does not)

Where RevSmith fits (and where it does not)

RevSmith shows planned weekly load per person, not billable utilization; this calculator is a separate tool. RevSmith is not a timer or a timesheet tool; it works out margin per client from fee, planned hours, logged hours and rates. Weighing whether scope, hours and money belong in one system? Read what an AI operating system for an agency does.

Agency 360: active clients, open tasks, leads and revenue this month, today’s calls, the tasks waiting and each person’s load, on one screen. Shown with Dunewave Social, a made-up demo agency.

Sources

  1. SPI Research, 2026 Professional Services Maturity Benchmark (19th edition), published 24 February 2026, covering 2025. Sample: 509 professional services organizations employing over 245,000 consultants. Population: professional services firms worldwide, not agencies. https://spiresearch.com/reports/2026-ps-maturity-benchmark/; sponsor and vendor summaries at https://www.deltek.com/resources/articles/professional-services-billable-utilization-historic-low/, https://www.deltek.com/resources/articles/professional-services-benchmarks/, https://www.certinia.com/blog/analyzing-the-2026-spi-research-professional-services-maturity-benchmark-report/ and https://www.rocketlane.com/blogs/professional-services-maturity-index-2026. S16 and S19 (Verified-secondary), S18 (Conflicting), S25 (Verified-primary).
  2. SPI Research, "The Truth About Billable Utilization: What Works and What Doesn't", 2025. Sample: SPI's benchmark surveys over several years; the 68.9% is the 2025 edition's (2024 data). Population: professional services firms. https://spiresearch.com/the-truth-about-billable-utilization/. S17 and S96 (Verified-primary).
  3. Teamwork.com, The State of Agency Operations, 2023. Sample: over 500 agency leaders; fieldwork dates not seen (the report is gated). Population: agencies in Teamwork.com's audience. https://www.teamwork.com/resources/agency-operations-benchmarking-report/. S103 (Verified-primary).
By the numbers · swipe →
  • Billable utilization across 509 professional services firms was 66.4% in 2025, the lowest in the 19 years SPI has run its benchmark, down from 68.9% for 2024 in the previous edition (SPI Research [1][2]).
  • SPI's high performers averaged 75.0%, other firms 64.9% (SPI Research, via Deltek [1]).
  • SPI tied 70% to 80% to the highest profitability, and above 80% to burnout and attrition (SPI Research [2]).
  • Only 18% of agencies always hit the billable targets they set (Teamwork.com, 2023, 500+ agency leaders [3]).

Frequently asked questions

What is a good utilization rate for agencies?

We found no agency benchmark with a published sample. SPI Research's professional services firms averaged 66.4% in 2025 and its high performers 75.0%, and its research tied 70% to 80% to the highest profitability. A target inside that band is defensible for billable staff; measure owners separately.

How do you calculate utilization rate?

Divide billable hours by available hours for the same people and period, then multiply by 100. Ten people billing 26 hours of a 40-hour week run at 65%. Say how you count available hours: removing holidays and leave raises the rate.

Is 80% utilization too high?

Above 80% is where SPI Research's work on professional services firms found burnout and attrition, which erode performance over time. It also leaves little room for non-billable work that keeps clients, such as account reviews. SPI's firms averaged 66.4% in 2025.

What is the difference between utilization and realization?

Utilization measures how much available time goes to billable work. Realization measures how much of that work's value, at standard rates, you collect. A team at 65% utilization and 90% realization collects 58.5% of its available hours' full-rate value. Raising one while the other slips can leave revenue flat.

Should available hours include holidays and time off?

For a true rate, no. Take holidays, leave and sick days out, and enter available and billable hours as averages over the whole year. A 40-hour week with six weeks off averages 35.4 available hours, which turns 26 billable hours into 73.5% instead of 65%.

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