Everhour tracks time off and work hours together, so utilization checks can use the right available-hours denominator.
Measure billable utilization against total capacity and see exactly how many hours you're leaving on the table each period.
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An instant utilization calculation answers one direct question: what share of a person's available time turned into billable work for the period? The core ratio is billable hours divided by available hours, then multiplied by 100. The result is a percentage you can compare against a role target, project plan, or staffing model.
The denominator drives the answer. A U.S. firm can use a 40-hour week as gross capacity because federal overtime rules require covered nonexempt employees to receive overtime pay for hours worked over 40 in a fixed 168-hour workweek. That baseline equals 2,080 gross annual hours before subtracting company PTO, holidays, unpaid leave, or other nonworking time.
A one-minute calculation needs three inputs: billable hours, the capacity period, and the denominator policy. Gross capacity uses scheduled capacity before leave. Net working capacity subtracts approved PTO, holidays, unpaid leave, and similar absences. Total logged hours uses only recorded time, which answers a different question because missing time drops out of the denominator.
For an instant check, write the denominator label beside the percentage. A consultant with 126 billable hours in a month and 144 net available hours has 87.5% net utilization. The same 126 billable hours against 160 gross scheduled hours gives 78.75% gross utilization. Both figures are valid, but they answer different staffing questions.
The utilization formula is `billable hours / available hours * 100`. Billable hours should include time that can be charged to a client or project under your billing policy. Available hours should follow the same denominator definition every time, especially when PTO, holidays, unpaid leave, or part-time schedules affect the period.
Example: a full-time consultant has 160 scheduled hours in a month and takes 16 hours of approved PTO. Net available hours are 144. The consultant logs 126 billable hours. The calculation is `126 / 144 * 100`, which equals 87.5% net utilization. If management also reviews gross utilization, the calculation uses `126 / 160 * 100`, which equals 78.75%.
A calculator is enough for a quick staffing check, a single project review, or a back-of-the-envelope comparison before a planning meeting. It works best when the person doing the math already has clean billable hours and a clear denominator policy for the period.
A managed workflow becomes necessary when utilization feeds recurring targets, resource planning, payroll review, or billing decisions. Everhour Time Off can track vacations, sick leave, custom leave types, partial-day durations, accrual, carryover, and approved requests alongside work time, so reported utilization can reflect actual availability instead of gross capacity alone.
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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A utilization percentage takes one formula once billable hours and available hours are known: billable hours divided by available hours, multiplied by 100. The fast version still needs a denominator label. A result based on gross scheduled capacity cannot be compared cleanly with a result based on net working capacity after PTO and holidays.
An instant check should include billable hours, available hours, the date range, and the denominator definition. Gross capacity, net working capacity, and total logged hours produce different percentages. The calculation also needs consistent treatment of PTO, holidays, unpaid leave, and part-time schedules if you compare people or periods.
Total logged time works only for a logged-time utilization view. It excludes missing entries by design, so it can inflate utilization when a person forgets to record non-billable work. Capacity-based utilization gives a stronger staffing signal because the denominator starts from scheduled or net available hours rather than only captured time.
PTO changes the denominator when the firm uses net working capacity. A person with 126 billable hours and 160 gross hours has 78.75% gross utilization. After 16 hours of PTO reduce available time to 144 hours, the same 126 billable hours equal 87.5% net utilization.
U.S. federal law does not set a professional-services utilization denominator or target. The FLSA does not define full-time or part-time employment, and it does not require payment for time not worked, including vacations, sick leave, or holidays. Employers define capacity policy, then use that policy consistently in utilization reports.
Everhour Time Off tracks vacations, sick leave, holidays, custom leave types, partial-day durations, accrual, carryover, and approval status. Time-off data flows into timesheets and reports, so a utilization report can use approved absences when calculating available capacity.
Track approved leave, billable work, and available capacity in Everhour so utilization targets reflect real working time and support better resource planning.
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