{
  "slug": "agency-utilization",
  "title": "Agency Utilization Calculator",
  "heading": "Agency Utilization Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/agency-utilization",
  "summary": "Billable utilisation, capacity, and revenue per head.",
  "description": "Utilisation is billable hours over available hours. Agencies target 70–80% — above 85% and the team burns out with no capacity to pitch new work.",
  "formula": "Utilisation = Billable hours ÷ Available hours. Capacity = Headcount × Hours × Target utilisation.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=agency-utilization",
  "inputs": [
    {
      "id": "headcount",
      "label": "Billable team members",
      "kind": "number",
      "hint": null,
      "default": 8,
      "unit": null,
      "min": 1,
      "max": null
    },
    {
      "id": "hoursPerWeek",
      "label": "Available hours per person per week",
      "kind": "number",
      "hint": null,
      "default": 38,
      "unit": null,
      "min": 1,
      "max": 60
    },
    {
      "id": "billableHours",
      "label": "Billable hours logged per week",
      "kind": "number",
      "hint": null,
      "default": 232,
      "unit": null,
      "min": 0,
      "max": null
    },
    {
      "id": "rate",
      "label": "Average billable rate",
      "kind": "number",
      "hint": null,
      "default": 145,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "target",
      "label": "Target utilisation",
      "kind": "number",
      "hint": null,
      "default": 75,
      "unit": "%",
      "min": 10,
      "max": 100
    }
  ],
  "outputs": [
    {
      "id": "utilization",
      "label": "Current utilisation",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "weeklyRevenue",
      "label": "Weekly billings",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "annualRevenue",
      "label": "Annualised billings",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "gapHours",
      "label": "Hours from target per week",
      "format": "decimal",
      "hint": null,
      "primary": false
    },
    {
      "id": "revenuePerHead",
      "label": "Revenue per billable head",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Billable team members: 8",
      "Available hours per person per week: 38",
      "Billable hours logged per week: 232",
      "Average billable rate: 145 $",
      "Target utilisation: 75 %"
    ],
    "outputs": [
      "Current utilisation: 76.3%",
      "Weekly billings: $33,640.00",
      "Annualised billings: $1,614,720.00",
      "Hours from target per week: -4",
      "Revenue per billable head: $201,840.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter billable team members.",
      "Enter available hours per person per week.",
      "Enter billable hours logged per week.",
      "Enter average billable rate ($).",
      "Enter target utilisation (%).",
      "Read your current utilisation on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "headcount": 5,
        "hoursPerWeek": 23,
        "billableHours": 140,
        "rate": 145,
        "target": 45
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "headcount": 8,
        "hoursPerWeek": 38,
        "billableHours": 230,
        "rate": 145,
        "target": 75
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "headcount": 13,
        "hoursPerWeek": 60,
        "billableHours": 370,
        "rate": 145,
        "target": 100
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the agency utilization calculator work?",
      "a": "Utilisation is billable hours over available hours. Agencies target 70–80% — above 85% and the team burns out with no capacity to pitch new work. The underlying maths is: Utilisation = Billable hours ÷ Available hours. Capacity = Headcount × Hours × Target utilisation."
    },
    {
      "q": "What do I need to enter?",
      "a": "5 values: billable team members, available hours per person per week, billable hours logged per week, average billable rate, and target utilisation. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the current utilisation result mean?",
      "a": "It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/freelance-rate",
    "https://www.revenuelab.fyi/toolbox/project-quote",
    "https://www.revenuelab.fyi/toolbox/meeting-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Agency Utilization Calculator (https://www.revenuelab.fyi/toolbox/agency-utilization)"
}