Everhour timecards support payroll review, while utilization rates depend on the billable-hours denominator you choose.
Measure billable utilization against total capacity and see exactly how many hours you're leaving on the table each period.
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Utilization answers one operational question: out of the hours a person, role, team, or project had available, how many became billable work? A customizable calculation matters because the denominator changes the result. Gross capacity, net working hours, scheduled capacity, and logged hours all produce different percentages, even when billable hours stay the same.
For U.S. teams, full-time capacity is usually an employer policy choice. The FLSA does not define full-time or part-time employment. Many firms use 40 weekly hours as a gross baseline because federal overtime rules require covered nonexempt employees to receive overtime pay for hours worked over 40 in a fixed 168-hour workweek.
The basic formula is billable hours divided by available hours, multiplied by 100. A person with 120 billable hours and 160 gross capacity hours has 75% gross utilization. If the firm nets 10 policy-approved nonworking hours out of capacity, the denominator becomes 150 hours, and the same 120 billable hours produce 80% net utilization.
That 5-point difference is not a math error. It is a denominator decision. A 40-hour weekly capacity baseline equals 2,080 annual gross hours before subtracting company PTO, holidays, unpaid leave, or other nonworking time. Federal law does not mandate paid vacation or holiday time for private employers, so your calculation must follow policy, contract, and worker-category rules.
A customizable utilization model lets you separate person, role, team, and project views. Delivery consultants can carry a higher billable target than managers who spend planned time on hiring, sales support, mentoring, or internal delivery quality. Treating every non-billable hour as leakage creates bad targets for roles that are supposed to protect capacity for management work.
Custom fields also prevent metric confusion. Utilization measures billable hours against a named capacity baseline. Realization compares billed revenue or billed hours against billable work performed. Efficiency compares actual work against estimates or planned effort. Productivity can include non-billable output. A team can hit 82% utilization and still miss realization if discounts, write-offs, or unbilled scope reduce revenue.
A one-off calculator is enough when you need a quick monthly check, a target-setting model, or a comparison between gross and net capacity definitions. It also works for scenario planning, such as testing whether 11 employer-paid holidays should reduce a 2,080-hour annual baseline for a particular team.
A managed workflow becomes necessary when utilization feeds billing, payroll review, capacity planning, or performance reporting. Teams need consistent time capture, billable and non-billable labels, approved timecards, time-off visibility, and exports that preserve the denominator used. Everhour supports that handoff by keeping daily, weekly, and monthly work-hour totals available for review.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Start with billable hours, then choose the denominator: gross capacity, net working hours, scheduled hours, or total logged hours. Gross capacity uses the full policy baseline, such as 160 monthly hours. Net working hours subtract approved nonworking time, such as PTO, holidays, unpaid leave, or other absences included in the firm's policy.
Net utilization runs higher when the denominator removes time the person was not available to work. For example, 120 billable hours divided by 160 gross hours equals 75%. The same 120 billable hours divided by 150 net available hours equals 80%. The billable work did not change; the capacity baseline did.
PTO and holidays should reduce available hours when the firm uses a net-working-hours denominator. Federal law does not require private employers to pay for vacation, sick leave, or holidays, so the treatment comes from employer policy, contract terms, worker category, or another applicable rule. OPM lists 11 federal holidays in 2026, but private-sector paid holidays remain policy-based.
A 100% utilization target leaves no room for internal meetings, training, administration, sales support, mentoring, rework, or planned bench time. U.S. federal sources do not set a professional-services utilization target. Set targets by role, service line, seniority, and delivery model, then compare actual utilization against that firm-defined benchmark.
Net working hours usually gives the cleanest staffing view, while gross capacity gives a stricter view of total workforce cost. Project profitability also needs realization, rates, labor cost, write-offs, and invoice status. Utilization alone says whether available time became billable work; it does not prove that billed revenue covered delivery cost.
Everhour timecards record daily, weekly, and monthly work-hour totals, which helps teams compare working hours with project hours before utilization reporting. Admins can review Team Hours, approve weekly timecards, and export data in PDF, CSV, or XLSX for payroll or archive workflows.
Everhour Resource Planning shows weekly capacity, scheduled time off, assignments, and planned versus actual tracked time on visual timelines. Managers can view workloads by member or project, spot overallocated people, and adjust future assignments before utilization misses become staffing problems.
Use approved timecards, work-hour totals, and project-hour comparisons before utilization reaches payroll or management reporting. Everhour keeps reviewable time records connected to utilization decisions.
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