Utilisation Rate Calculator: Team Revenue Gap | Quantim
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Utilisation Rate Calculator: What Is Your Team's Revenue Gap?

At 8 fee earners on 37h 30m a week over 45 chargeable weeks, moving from 60% to 66% takes 27m more chargeable time per person per day and leaves 12h 45m a week each for bids, admin, CPD and management. That is 810 more chargeable hours a year, worth about £68,900, and only if the work exists to fill them, they are charged at the rate you entered, and they are invoiced and paid.

A utilisation rate is not a measure of effort. It is what is left of the week once leave, bids, admin, CPD and management have taken their share. Put in your own figures and this tool shows you where a week and a year of paid capacity actually go, what moving your utilisation would add in chargeable hours, and only then what those hours are worth in fees. It takes annual leave and bank holidays out before it multiplies anything, it keeps what you invoice separate from what you record, and it draws the ceiling your own week already sets.

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Your Capacity

Work out your utilisation gap

At 8 fee earners on 37h 30m a week over 45 chargeable weeks, moving from 60% to 66% takes 27m more chargeable time per person per day and leaves 12h 45m a week each for bids, admin, CPD and management. That is 810 more chargeable hours a year, worth about £68,900, and only if the work exists to fill them, they are charged at the rate you entered, and they are invoiced and paid.

Starting shapes, not benchmarks. Each one sets team size, contracted hours and chargeable weeks only. None of them touches your utilisation percentages, your rate or your realisation, because those are yours to supply.

Where a week and a year of paid capacity go
Your year, per person1,687.5 hours at work in 45 chargeable weeks
Your week now, per person37h 30m contracted
Your week at targetPractical ceiling 86.7%
Chargeable now, a week 22h 30m The move +2h 15m Non chargeable, a week 12h 45m Leave and holidays 7 wks Practical ceiling 86.7%

Those two percentages start at round numbers so the tool has something to draw. They are not a benchmark and not a typical figure. Take your current utilisation from your own reports and replace them.

Honesty checks
📊 Your gap
810 hours
Chargeable hours a 6 point move adds, a year
Fees a year at 60%£688,500
Fees a year at 66%£757,400
The gap, a year£68,900
Before your 100% realisation£68,900
The gap, an average month£5,740
Now 60%Ceiling 86.7%
Measure it, do not estimate it →
Worked out in your browser. Nothing you type is saved or sent anywhere.
What That Means In Practice
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27m a day

Per fee earner, on top of the chargeable time they already record, spread over a five day week. This one does not depend on how many weeks a year you work: the daily change is the same at 45 chargeable weeks or 52.

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2h 15m a week

Per fee earner. Practice managers plan in weeks, and a week is where a target either fits into people's diaries or plainly does not.

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0.48 of a fee earner

That is how much extra output the gap is worth in a year without hiring anyone. It is a capacity fact rather than money sitting on a table: the hours only become fees if there is sold work to put them on.

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£11,500 a point

What one percentage point of utilisation is worth across the team in a year, in invoiced fees after your realisation. It is a straight rate of exchange, so divide any fee target by it and you get the percentage points that target needs. Planning mode does exactly that sum, which means you can check this tool against itself.

How this is worked out
  • Available hours = fee earners × contracted hours a week × chargeable weeks a year. At the starting figures that is 8 × 37.5 × 45 = 13,500 hours a year, or 1,687.5 each
  • Utilisation = chargeable hours ÷ available hours. Available hours are the hours people are actually at work, so annual leave and bank holidays come out before anything is multiplied rather than sitting inside the figure as non chargeable time
  • Basis: this page divides by attended hours. If your own report divides by contracted hours, or by every hour worked including overtime, it will give a different percentage for the same team
  • The capacity gap is shown in hours before it is shown in pounds: gap hours = available hours × (target minus current). Hours are a fact about your own diary, pounds need three further assumptions
  • Every money figure here is invoiced value: gap hours × your charge-out rate × your realisation. The one row labelled before your realisation shows the same hours at the rate card, so you can see what realisation costs rather than having it folded away
  • A month means an average month: the annual figure ÷ 12. We never take a week and multiply it by 4.33, because that assumes 52 chargeable weeks and nobody taking leave. At 45 chargeable weeks that method overstates a month by 15.6 per cent
  • Extra chargeable time per person = contracted hours × (target minus current), then ÷ 5 for the daily figure. Chargeable weeks cancel out of it entirely, so the daily change is the same at 45 weeks or 52
  • Whole fee earners equivalent = gap hours ÷ (contracted hours × chargeable weeks)
  • One percentage point a year = fee earners × contracted hours × chargeable weeks × rate × realisation ÷ 100. It is a straight rate of exchange, so divide any fee target by it and you get the percentage points that target needs. Planning mode does exactly that sum, which means you can check this tool against itself
  • Practical ceiling = 100 per cent minus (fixed internal hours a week ÷ contracted hours a week). Above the ceiling the figures still compute, because refusing to answer the question you asked is not honesty, but a warning says plainly that no amount of sold work reaches a target above it
  • The whole chain: invoiced fees = fee earners × contracted hours × chargeable weeks × utilisation × charge-out rate × realisation. Utilisation is one lever of six
  • Percentage points, not per cent: 60 per cent to 66 per cent is 6 percentage points, and a 10 per cent increase in chargeable hours
  • On fixed fee and capped fee work, extra chargeable hours add cost rather than fees, because the fee is already agreed. Utilisation goes up and margin goes down
  • Spare capacity only becomes fees if there is sold work to put it on. A practice with an empty pipeline has a sales problem, and booking 27 more minutes a day will not fix it
  • Count fee earners in full time equivalents, so three days a week is 0.6, and leave out admin, finance, marketing and subcontractors. Rates exclude VAT and nothing on this page calculates VAT
  • Money is rounded for display, to the nearest £100 above £10,000 and the nearest £10 above £1,000, while the arithmetic itself runs at full precision. Five estimated inputs do not justify an answer to the pound
  • We do not publish a typical utilisation figure, here or anywhere on this page, because we cannot evidence one. Every starting value is a placeholder to replace with your own
  • If your timesheets are incomplete, part of this gap is client work that was never recorded rather than time spent internally. Capturing it raises the percentage with nobody changing what they do, so do not add this figure to the unbilled hours estimate on the timesheet ROI calculator: they are overlapping estimates of partly the same pounds
  • An estimate, not a quote. Your figures will differ. It is worked out in your browser and nothing you type is saved or sent anywhere

Two more free tools sit alongside this one. If your problem is chargeable work that never reaches a timesheet at all, rather than time recorded in the wrong bucket, use the timesheet ROI calculator. If you just need the hours between a start and a finish for one day or one week, use the hours worked calculator.

The Definition

What a utilisation rate actually measures

A utilisation rate is one division: chargeable hours divided by the hours a person was available to work, expressed as a percentage. Everything else on this page follows from getting those two numbers right.

Chargeable hours, not hours worked

Chargeable means recorded against a client job and flagged as chargeable, whether or not it is ultimately invoiced. Recording an hour as chargeable is a coding decision rather than a billing decision, so an hour can be chargeable and still never reach an invoice. On the other side of the line sit bids and business development, marketing, practice and finance administration, line management and appraisals, CPD, quality assurance and internal review, and rework the practice carries at its own cost. Some of that is waste. Much of it, particularly bids and CPD, is what creates next year's chargeable work, which is why the aim is an optimum rather than a maximum.

Capacity after annual leave and bank holidays

Fifty two weeks is not a working year. Statutory annual leave in the UK is 5.6 weeks under the Working Time Regulations 1998, and an employer may count bank holidays within that entitlement. Bank holidays themselves differ across the UK, with eight in England and Wales, nine in Scotland and ten in Northern Ireland, so a practice with offices in more than one nation does not have a single figure at all. That is why chargeable weeks a year is an input here rather than a constant. At 37.5 contracted hours over 45 chargeable weeks, one person is available for 1,687.5 hours a year and a team of eight for 13,500, and those are the numbers utilisation should be measured against.

Why one hundred per cent is the wrong target

Add up the hours in a normal week that cannot go to a client whatever you sell: the team meeting, the appraisal, the timesheet and finance admin, mandatory CPD, line management, the quality review. Divide that by contracted hours and take it off one hundred per cent, and you have your practical ceiling. Five fixed internal hours in a 37.5 hour week put the ceiling at 86.7 per cent, and a target above it is unreachable arithmetically rather than culturally. The calculator draws that ceiling on the bar before you cross it, and says so plainly when a target goes past it.

Utilisation, realisation and recovery are three different numbers

Utilisation is how attended time splits between client work and internal work. Realisation is how much of the value of that chargeable time survives to an invoice, once write downs, fee caps, fixed fee overruns and courtesy discounts have been applied. Collection is what finally reaches the bank, after credit notes, disputes and bad debt. Recovery is used in two senses in UK practice, sometimes interchangeably with realisation and sometimes to mean whether the fee on a job covers the resource cost of delivering it, so it is worth agreeing which one your own reports mean before comparing them with anything here. The three move independently: a busy team can be highly utilised and still recover poorly.

The three measures, and what each one divides by
MeasureWhat it dividesFormula
UtilisationAttended timechargeable hours ÷ available hours
RealisationTime valuefees invoiced ÷ (chargeable hours × standard rate)
CollectionInvoiced valuecash collected ÷ fees invoiced
Reading The Panel

How to read your result

The panel prints hours first and pounds second, and every figure in it is invoiced value except one row that is labelled otherwise. Here is what each line means.

Fees at your current utilisation

Available hours times your current utilisation times your charge-out rate times your realisation. It is invoiced fee value at your own numbers, not cash: credit notes, disputed invoices and aged debt all sit between an invoice and the bank, so an hour is not money until it is paid.

Fees at your target utilisation

The same line with the target substituted, which is why the difference between the two rows is exactly the gap row beneath them. That difference only becomes money if there is sold work to put the hours on. Utilisation is capped by what you have sold, not by willingness. Once the hours are sold and recorded, turning them into a fee is the mechanical part, and you can see a timesheet become an invoice if you want to watch that step.

The gap, per week, per month and per year

Hours first, then fee value. The monthly figure is the annual figure divided by twelve, and the annual figure was built from your chargeable weeks, so it describes an average month rather than a peak one. We never take a week and multiply it by 4.33. That method quietly assumes 52 chargeable weeks and therefore that nobody takes annual leave, and it overstates the answer by 52 divided by your chargeable weeks: 15.6 per cent at 45 weeks, and still about 12 per cent even at the statutory minimum entitlement. Lower the realisation slider and a second gap row appears showing the same hours at your rate card, so the distance between what you record and what you invoice is on screen rather than folded into the rate.

What the gap works out at per person, per day

Contracted hours times the move in percentage points, divided by five. Six points on a 37.5 hour week is 27 minutes a person a day, or 2 hours 15 minutes a week, which lands better with anyone who plans in weeks. Chargeable weeks cancel out of that sum entirely, so the daily change is identical at 45 weeks or 52, which surprises most people. Two warnings go with the figure. A rising utilisation rate can simply mean people are working longer, which prices goodwill rather than capacity and stores up attrition. And a team average of 60 per cent can be three people at 90 and two at 35, which is a completely different problem from everybody being slightly under, and only one of the two is solved by anyone changing their daily habits.

What To Do

Four ways to close a utilisation gap

None of these is software. Three of them are decisions, and the fourth is a measurement problem that happens to be the one a timesheet can fix.

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Capture the chargeable work you already do

If timesheets are late or incomplete, your measured utilisation is understated and part of your gap is a measurement failure rather than a behaviour one. Nobody's day changes when that is fixed, only the record does. It is also exactly why this figure must never be added to the unbilled hours estimate on our timesheet ROI calculator: the two overlap and you would be counting the same pounds twice. Good timesheet software makes recording the easy path rather than the Friday afternoon chore.

Split chargeable from non chargeable at the point of entry

A split reconstructed from memory at month end is a guess with a decimal point on it. Set activities up as chargeable and non-chargeable activities so the coding decision is made while the work is fresh, by the person who did it, and the percentage becomes something you can act on rather than argue with.

Rebalance workload before you rebalance headcount

Averages hide their own distribution, and an annual average also hides bid periods, project starts, August and Christmas. Look at where each person sits against their own target before concluding you need another pair of hands, which is what how resource planning works in Quantim is for. Half a fee earner's worth of unused capacity spread across eight people is a scheduling question, not a recruitment one.

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Give every person a target and make it visible

A target nobody can see their position against is a number in a spreadsheet. Set it per person rather than practice wide, because a director who sells the work will sit structurally lower than a delivery architect, and blending the two produces a figure that describes nobody. Setting it weekly rather than annually is what makes it early enough to act on.

One honest limit applies to all four. On fixed fee and capped fee jobs, extra chargeable hours add cost against a fee that is already agreed, so utilisation rises while margin falls, and the answer inverts. Software measures the number and captures hours that were being lost. It does not sell work, hire people, or decide that a Thursday afternoon moves from internal to client.

In The Product

How Quantim measures utilisation once you have set a target

This page gives you an estimate from figures you supplied. Quantim gives you the real number, from time your team records as the work happens.

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A utilisation limit on every staff record

Each staff member has a utilisation limit set against them in Quantim, which is the target that person is measured against rather than a practice wide average that describes nobody. It is the figure their own weekly summary compares their chargeable hours with.

Chargeable versus non chargeable on the timesheet

Quantim lets you create billable and non billable activities so administration is separated from project work, which is what makes staff utilisation measurable in the first place. The split is recorded as people fill in their timesheets rather than reassembled from memory afterwards.

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Utilisation in your reports

Quantim's time tracking reports assess staff utilisation rates and compare billable against non billable time, alongside profitability, work in progress and fee recovery, and its resource reports give managers a live view of capacity, workload and utilisation across the team. See utilisation and profitability reports for what the suite covers.

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Log time where the work actually happens

Daily and weekly timesheets, hourly entries, a timer and AI voice entry, plus the mobile app and the watch app for time that happens away from a desk. The Quantim mobile app also shows each person their own weekly utilisation summary, split between chargeable and non chargeable hours, against the utilisation limit set for them. Recorded time flows through to fee invoicing, and you can push fees through to your accounts system from there.

Stated plainly, because the difference matters. Quantim shows you this number accurately and weekly, so you can decide whether the gap is worth chasing and who it actually belongs to. It does not close the gap for you. If you want to know what that costs, see plans and pricing.

By Practice Type

How utilisation differs by type of practice

What differs between these practices is the shape of the non chargeable half, not a target number. This page will not tell you what your peers run at, because we cannot evidence it.

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Architecture and interior design practices

RIBA work stages, competition and feasibility work often carried at the practice's own cost, mandatory CPD under RIBA and ARB schemes, and design development absorbed inside a fixed fee. The fixed fee point matters most here: on a capped fee, extra chargeable hours add cost rather than income. Written for architecture practices and interior design studios.

Engineering consultancies and EPC contractors

Forty hour contracts are more common than 37.5, technical checking and quality assurance is structurally non chargeable, framework and tender bidding is heavy and lumpy, and site time is chargeable but frequently recorded days after it happened. Change the contracted hours input before you read anything else. Written for engineering consultancies and EPC contractors.

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Surveyors and property developers

Travel and inspection time, RICS CPD, and the prior question of whether time is charged out at all or carried as a project cost. Where the hour is not the unit of sale, utilisation is a cost control measure rather than a revenue one, and the fee value column should be read as capacity value. Written for surveying practices and property developers.

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IT and management consultants

Time between engagements is the visible cost, presales and proposal writing sits firmly on the non chargeable side, blended rates hide the widest grade spread of any of these sectors, and utilisation tends to be watched weekly rather than at the year end. Written for IT and management consultants.

FAQs

Utilisation rate calculator: your questions answered

How do you calculate a utilisation rate?
Divide the chargeable hours a person records by the hours available to them over the same period, then multiply by one hundred. Someone available for 37.5 hours in a week who records 24 chargeable hours is at 64 per cent. This calculator runs that sum across your whole team against attended capacity, which is contracted hours multiplied by chargeable weeks a year, then converts the difference between your current rate and your target rate into chargeable hours and then into fee income at your own charge-out rate.
What is a good utilisation rate?
There is no single correct figure and we will not quote a benchmark we cannot evidence. Work out your own practical ceiling instead: one hundred per cent minus the share of the week that fixed internal commitments take, such as team meetings, appraisals, timesheet and finance admin, CPD, line management and quality reviews. Five fixed internal hours in a 37.5 hour week put that ceiling at 86.7 per cent. Set a target below your own ceiling that still leaves room for bids and business development, and treat it as a planning assumption rather than an industry fact.
Should I use fifty-two weeks a year in the calculation?
No, and this is where quick utilisation sums usually go wrong. Fifty-two weeks assumes nobody takes annual leave or a bank holiday, which overstates capacity and therefore overstates both your fee figures and your gap. This calculator asks for chargeable weeks a year instead, starting at 45, and you can change it to match your own leave policy. At 45 chargeable weeks, working a month out as one week multiplied by 4.33 overstates it by 15.6 per cent. The Quantim timesheet ROI calculator uses the same chargeable weeks input, so the two tools stay consistent with each other.
What is the difference between utilisation and recovery?
Utilisation is what share of a person's available time is chargeable. Recovery, in the sense this page uses, is what share of that chargeable time value you actually invoice, once write downs, fee caps and fixed fee overruns have been applied, and it is often called realisation. Recovery is also used in UK practice to mean whether the fee on a job covers the resource cost of delivering it, so it is worth agreeing which sense your own reports use. The two measures move independently, so a busy team can be highly utilised and still recover poorly. If your concern is chargeable work that never reaches a timesheet in the first place, the timesheet ROI calculator is the tool for that.
Is this a utilisation rate calculator or a utilization rate calculator?
They are the same thing. Quantim is a UK product, so we use the British spelling, utilisation, across this site and inside the software itself. If you searched for the American spelling, utilization, you are in the right place and the maths is identical.
What counts as chargeable time?
Any work you can put on a client invoice under your fee agreement: design and delivery work, site visits, client meetings, and the calls and emails that go with them. Internal admin, holiday, sick leave, training and unpaid bid work are not chargeable. Travel, rework and courtesy work are boundary cases your practice has to decide on and then apply consistently. In Quantim you set activities up as billable or non billable, so administration is separated from project work as people fill in their timesheets rather than reconstructed at month end.
How many extra hours a day does closing the gap take?
The calculator shows you, because a percentage point means very little until it is expressed as time. Multiply your contracted hours by the move in percentage points, then divide by five. Moving six points on a 37.5 hour week is 27 minutes per person per working day, and the chargeable weeks figure cancels out of that sum entirely, so the daily change is the same whether you work 45 weeks a year or 52. The number is usually smaller than people expect, which is rather the point: most utilisation gaps close by capturing work that already happens, not by asking anyone to work longer.
Can Quantim show our real utilisation rather than an estimate?
Yes. Quantim lets you create billable and non billable activities so administration is separated from project work, and its time tracking reports assess staff utilisation rates and compare billable against non billable time. Each staff member has a utilisation limit, or target, set against them, and the Quantim mobile app shows that person their own weekly utilisation summary split between chargeable and non chargeable hours. Time can go in through daily or weekly timesheets, hourly entries, a timer, AI voice entry, or the mobile and watch apps, so the underlying figures are captured as the work happens rather than reconstructed later.
Do I need to buy anything to use this calculator?
No. It is free, it needs no signup, and the calculation runs in your browser as you move the sliders. Nothing you type is saved or sent anywhere. If you then want to track utilisation properly rather than estimate it once, Quantim offers a free trial with no credit card required.

There are more questions about Quantim in the main FAQ.

Calculators & Tools

More free tools from Quantim

Every one of these is free, needs no signup, and works its answer out in your browser. Nothing you type is saved or sent anywhere.

📈

Timesheet ROI Calculator

See what unrecorded billable hours cost your practice over a year, and what capturing them could recover. Includes a charge-out rate and margin calculator.

Open the ROI calculator →

Hours Worked Calculator

Work out the hours between a start and a finish, less unpaid breaks, in hours and minutes and in decimal hours. Overnight shifts and a full week included.

Open the hours calculator →
🧾

Timesheet to Invoice Demo

Play through the whole flow: log time against a job, review the fees it earns, then raise the fee invoice. No signup, nothing to install.

Open the demo →
💰

Overtime Calculator

Enter your hourly rate, contracted hours and overtime hours at your contract multiplier and see gross overtime pay, effective hourly rate and the annual cost.

Open the overtime calculator →
From Target To Invoice

Turn your utilisation target into invoiced fees

A target only means something once somebody is measuring against it every week, on figures people recorded while the work was happening. Try Quantim free for a month and see your real split between chargeable and non chargeable time instead of estimating it once. No credit card needed. Free data migration. Cancel anytime.

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