Everhour tracks time off and work hours together, while this page explains the utilization math behind the result.
Measure billable utilization against total capacity and see exactly how many hours you're leaving on the table each period.
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Industry average for agencies: 75–85%
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A utilization rate answers one practical question: how much of available working capacity turned into billable, client-facing, or otherwise chargeable work. Firefox does not change the calculation, so use it as a clean browser workspace, keep the source timesheet open in another tab, and enter the same hours you would use on any modern browser.
For a U.S. employee, the denominator starts with employer-defined capacity. The FLSA does not define full-time or part-time employment, so full-time capacity is an employer policy input rather than a federal legal threshold. Many firms start with 40 weekly hours because federal overtime rules require covered nonexempt employees to receive overtime pay for hours worked over 40 in a fixed 168-hour workweek.
A 40-hour weekly baseline equals 2,080 annual gross hours before subtracting company PTO, holidays, unpaid leave, or other nonworking time. That gross number works for capacity planning, but it overstates utilization if your firm wants a net-working-hours denominator. A person with approved PTO, paid holidays, or actual unpaid leave had fewer available hours during that period.
The FLSA does not require payment for time not worked, including vacations, sick leave, or federal or other holidays, so paid annual leave is not a federal denominator entitlement for private employers. OPM lists 11 federal holidays in 2026 for federal employees. Private-sector paid holidays remain a matter of employer policy unless another law or contract applies.
Use this formula: billable hours divided by available hours, multiplied by 100. Available hours should match the denominator policy you chose. Gross utilization uses scheduled capacity before leave adjustments. Net utilization subtracts holidays, PTO, unpaid leave, and similar absences first, then compares billable hours with the hours the person was available to work.
Example: a consultant has 176 gross scheduled hours in a month, 8 hours of company holiday time, and 8 hours of approved PTO. Net available capacity is 160 hours. If the consultant records 120 billable hours, utilization is 75%. At a $125 standard hourly billing rate, those billable hours carry $15,000 of standard billable value before discounts, write-downs, or invoice adjustments.
Firefox can make the workflow faster without changing the inputs. Pin the calculator tab beside the time report, use autofill only for repeated non-sensitive fields, and print or save the final view as a PDF if you need an audit attachment. Clear saved form values when you share a computer or handle payroll-sensitive data.
The calculation is enough for a one-off monthly check, a proposal estimate, or a quick partner review. A managed workflow becomes necessary when PTO approvals, time-off balances, timesheet submissions, billing handoff, or payroll review must survive beyond one browser session. Everhour Time Off keeps vacations, sick leave, custom leave types, partial days, accrual, carryover, balances, approvals, and timesheet totals in the same workflow.
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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Divide billable hours by available hours, then multiply by 100. If a person has 120 billable hours and 160 available hours, the utilization rate is 75%. Use the same denominator policy every period, because switching between gross scheduled hours and net available hours changes the result.
Firefox does not affect utilization math. The formula, billable hours divided by available hours, stays the same across browsers and operating systems. Firefox only affects the working setup, such as pinned tabs, saved form behavior, PDF printing, or keeping a time report open beside the calculator.
Approved PTO should reduce available hours when the firm uses a net-working-hours denominator. The FLSA does not require payment for time not worked, including vacations, sick leave, or holidays, so the reduction comes from employer policy, contract terms, or another applicable rule rather than a federal private-sector leave mandate.
No. BLS classifies workers as full time in CPS statistics when they usually work 35 or more hours per week, but BLS states this is a statistical definition, not a legal one. A U.S. utilization denominator should treat full-time capacity as an employer policy input.
No. U.S. federal sources define work-hour and leave rules, but they do not set a professional-services utilization target. A target utilization rate is a firm, role, service-line, or industry benchmark choice. A senior consultant, support specialist, and manager can have different valid targets.
Everhour Time Off tracks vacations, sick leave, holidays, and custom leave types with partial-day durations, accrual, carryover, per-employee balances, and approval workflows. Time-off hours flow into timesheets and reports, so available capacity reflects approved absences instead of manual spreadsheet adjustments.
Everhour reporting turns logged time, budgets, costs, and project data into configurable reports with columns, filters, grouping, date ranges, and exports. Teams can review billable time, non-billable time, labor costs, and project profitability without rebuilding the same utilization dataset each month.
Track approved time off, working hours, and billable work in one workflow. Everhour Time Off keeps absence data connected to timesheets and reports for cleaner utilization review.
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