How to Calculate Resource Utilization in Excel

Calculate billable utilization for a person and a team, then turn the gap to target into lost revenue.

You will learn to

• Calculate one person’s billable utilization
• Calculate team utilization from totals
• Value the gap to a utilization target

How it works

Utilization is the share of available hours spent on billable work: billable hours ÷ available hours. Agencies and consultancies usually target 70–85%; much lower means unbilled time, much higher risks burnout.

For a team, divide total billable hours by total available hours so part-timers count in proportion. To show what a shortfall costs, multiply the missing hours — available × target − billable — by the average billing rate. That turns a percentage into a dollar figure a manager can act on.

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