Billable utilization rate calculator: how much of your crew's available time gets billed

Page last updated · Benchmarks checked

Utilization is billable hours divided by the hours your people were available to work. Enter three numbers and this calculator returns the percentage, shows where the rest of the time went, and compares it with published benchmarks from HVAC, plumbing, landscaping and professional services. Those benchmarks disagree with each other, so the page also shows how each one defines “billable” and which figure is closest to yours.

Benchmarks disagree, and most publish no method. The two measured averages we found sit near two-thirds: 66.4% for professional services firms in SPI Research's 2026 report (covering 2025) and 65% of paid time for HVAC technicians in a Field Promax report covering 300 companies. The “healthy” ranges that software vendors publish start higher, at 60–75% and up to 85%. Check the benchmarks table and the definitions section before deciding you are behind.

Who this is for

Owner-operators and office managers at HVAC, plumbing, electrical, landscaping and pest control businesses with roughly 2–25 field technicians who already record hours by job, in field service software or a time clock, and want to know what share of paid time earns revenue. It also suits office-based service teams and agencies that bill by the hour, which is why the benchmark table includes professional services figures.

It is less useful if you do not record billable hours yet (track a typical two weeks of jobs and drive time first, then come back), if you want to price jobs rather than measure time (the technician billable hourly rate calculator takes utilization as an input), or if you are measuring office and admin roles whose time is not billable by design. Utilization also says nothing about whether the billed hours were priced well: a crew can bill 80% of its time at a rate that still loses money.

What you will enter

Every input maps to a variable in the formula further down. In plain language:

Total paid hours (Htotal)
Every hour you paid for in the period, for one person or the whole crew: regular time, overtime and paid time off. Use the same period for all three numbers, whether a week, a month or a year.
PTO hours (HPTO)
Paid vacation, sick leave and paid holidays in that period. These hours are paid but nobody was available to work, so the formula removes them. Enter 0 to measure against all paid hours instead, which some benchmarks do.
Billable hours (Hbillable)
Hours you charged for, or recovered through the price of the job. See what counts as billable below, then pick one definition and keep it.
Utilization (Uactual)
The result: billable hours as a percentage of the hours people were available to work.
Billable rate (optional, not in the formula)
Your hourly billing rate. It is used only to put a dollar value on the gap between your rate and a target.
Target range (optional, not in the formula)
A benchmark from the table below, or your own range, to compare your result against.

Calculate your utilization

Hours for one period
Include overtime and paid time off.
Paid vacation, sick leave and holidays. Leave blank or enter 0 if none.
Used only to value the gap to a target.

The example is one technician over a year: 2,080 paid hours, 120 PTO hours and 1,176 billable hours. It is illustrative, not a benchmark.

Compare with a benchmark

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Enter total paid hours and billable hours to see your utilization.

Where the paid hours wentHoursShare of available

Estimates only, for informational purposes. This is not professional financial, legal or tax advice. Benchmarks are published by third parties, define utilization differently and change; treat them as context, not as a standard you must meet.

Crew view: per-person rates and the crew rate

Add one row per person. The crew rate divides everyone's billable hours by everyone's available hours, so a part-timer with few hours counts for less than a full-timer. That is not the same as averaging the individual percentages, and the two can differ by several points. Use the button under the table to send the crew totals to the calculator above.

Person Total paid hours PTO hours Billable hours Utilization Remove

What your number suggests

These four bands come from one vendor's guidance (FieldEdge, June 2026), which divides by total paid hours, so enter 0 for PTO to match. Treat them as a starting point for looking at your schedule, not as a diagnosis.

Below 60%

FieldEdge says this may point to major inefficiencies or downtime. Look first at idle gaps between jobs, drive time and callbacks.

60% to 70%

FieldEdge links this band to scheduling, routing or operational gaps. It is also where the Field Promax HVAC average (65%) falls, so it is a common place to be.

70% to 85%

FieldEdge calls this a healthy operating range. ServiceTitan calls 60–80% strong, and Simpro sets 75% or more as a plumbing target.

Above 85%

FieldEdge says this can show strong productivity but raises burnout risk. It can also mean drive or shop time is not recorded, or that no time is left for same-day calls.

What the published benchmarks say

This table lists every utilization figure we could trace to a named source, with what each one measures. Only two rows are measured averages: SPI Research for professional services and Field Promax for HVAC technicians. The rest are guidance ranges from software vendors and aggregators that do not publish a method or sample size. Pick the row whose definition matches how you entered your hours.

Group Figure Type What it measures Source
HVAC technicians 65% (5.7 billable hours of an 8.8-hour paid day) Measured average, 300 companies Time chargeable on the invoice divided by paid hours per day; no time off removed Field Promax, via ACHR News
Professional services firms 66.4% in 2025 (68.9% in 2024, 73.2% in 2021); 75% called optimal Measured average, 500+ firms Billable time divided by available time; exact definition not verified SPI Research, via Deltek
HVAC and field service 70–80% healthy; 65–85% common target; under 60% signals major inefficiency; over 85% burnout risk Vendor guidance Billable hours divided by total paid hours FieldEdge
Field service, general 60–80% strong Vendor guidance Time on jobs including upsell work divided by total time worked ServiceTitan
Plumbing 75% or more target; 75–80% top performers; average 55–60% (60–70% in another section) Vendor guidance Billable hours divided by available or paid hours (both are described) Simpro
Landscaping 65–80% typical; 75–85% target Vendor guidance Billable hours divided by total work hours GreenMargins
Architecture and engineering About 80% firm-wide target; median 81.9%; 75–85% healthy Vendor guidance Billable divided by available hours; source of the median not stated Runn; Monograph
Accounting 65–85% per individual; about 60% firm-wide Aggregator, cites other sources Billable hours divided by available hours Runn
Management consulting Just under 70% firm-wide; 70–80% for individuals Aggregator, cites Deltek and SPI Billable hours divided by available hours Runn
Marketing agencies 70–80% target Aggregator, cites other sources Billable hours divided by available hours Runn
Legal services About 40% firm-wide is considered good Aggregator, cites LawPay Firm-wide billable utilization Runn
Pricing-tool assumption, not a benchmark 30% good; 50% extremely efficient Planning default in a labor rate calculator Billable time on the customer's site out of an 8-hour day ServiceTitan labor rate calculators

Where the sources contradict each other

We did not verify benchmarks for electrical or pest control businesses, so none are shown. For landscaping we found only a vendor range, not a measured average.

What counts as billable, and which hours to divide by

Most of the gap between two utilization numbers is definition, not performance. Settle these five points before comparing yourself with anyone.

Paid hours or available hours

This calculator divides by available hours, meaning paid hours minus PTO. FieldEdge's formula divides by total paid hours, and the Field Promax figure is measured per working day. The choice moves the result: 1,176 billable hours against 2,080 paid hours is 56.5%, and against 1,960 available hours is 60.0%. Neither is wrong, but they are not interchangeable. If the figure you are comparing with divides by paid hours, enter 0 for PTO.

Drive time

Field Promax counted only drive time recovered through a trip charge or flat-rate pricing as billable, and found about 1.13 hours a day of unrecovered driving on an 8.8-hour paid day. Simpro suggests looking at routing when technicians spend 30% or more of their day in the truck. Decide whether recovered travel counts as billable in your shop, and apply the same rule every period.

Flat-rate and membership work

With flat-rate pricing the customer is not invoiced for hours, so “chargeable on the invoice” needs translating. A workable rule is to count the recorded time on work orders that produced revenue, including on-site time and any travel your flat rate is built to recover. Time on unpaid callbacks, quoting that was not converted, and shop or truck maintenance stays non-billable.

Overtime and shared jobs

Overtime hours go in paid hours, and in billable hours when they were spent on billable work. For jobs worked by two or more people, count each person's own hours against their own record; that keeps the crew rate consistent with the per-person view above.

Seasonality

A peak-month rate compared with an annual benchmark overstates your position, and a slow-month rate understates it. Measure a full year, and look at months separately for planning. GreenMargins makes a similar warning about overhead per hour: do not calculate from busy-season hours only.

Worked examples

Example 1: one technician, one year

An HVAC technician is paid for 2,080 hours (40 hours for 52 weeks), 120 of them paid time off, and billed 1,176 hours. All numbers here are illustrative.

ItemHours
Total paid hours2,080
PTO hours120
Available hours (2,080 − 120)1,960
Billable hours1,176
Utilization (1,176 ÷ 1,960 × 100)60.0%

What five more points is worth: 5% of 1,960 available hours is 98 hours, which at a $100 billable rate is $9,800 a year for this technician. Simpro's plumbing guide puts the same five-point gain at about $10,400 a year for a $100-an-hour technician. That figure equals 5% of 2,080 hours at $100, which is our arithmetic and not Simpro's stated method, and the difference from $9,800 is the PTO hours in the denominator.

Example 2: a crew of three, one month

Two full-time technicians and one part-timer, none with PTO in the month.

PersonAvailable hoursBillable hoursUtilization
Tech A16012880.0%
Tech B1608050.0%
Tech C (part time)807290.0%
Crew rate (280 ÷ 400 × 100)40028070.0%
Average of the three rates——73.3%

The average of the three percentages overstates the crew by 3.3 points because Tech C's 90% comes from only 80 hours. It also hides the real finding: Tech B is far below the others and is worth a look at their schedule and job mix. The crew view above lets you load this example.

How utilization changes the rate you need to charge

Hold your costs constant and the hourly rate needed to recover them varies with 1 ÷ utilization. Moving from 60% to 70% cuts the required rate by 14.3% (0.60 ÷ 0.70 = 0.857). Pricing from a 30% assumption instead of 60% would double the required rate for the same labor and overhead. That is why the definition matters as much as the number.

In the technician billable hourly rate calculator, available annual hours are multiplied by utilization (Eutilization, a value from 0 to 1) to get the hours you can bill, and your labor and overhead costs are divided across them. The decimal shown next to your result above is that same number. Check how that calculator defines available hours; if it already excludes time off, use the rate from this page with your PTO entered.

Crews, drive time and landscaping

Crew utilization is measured in person-hours, so a lost hour costs as many hours as there are people in the truck. If a three-person crew loses 40 more minutes a day to driving between properties, that is two person-hours a day (3 × 40 minutes) that were paid and cannot be billed. Route density, load-out time and equipment downtime all show up in the crew rate before they show up anywhere else.

Measuring it needs hours recorded by crew and by property, not just by day. If you are choosing landscaping software partly to track crew time and job costs, see Aspire vs Jobber for landscaping, which compares a commercial-focused platform with a residential-focused one.

Where operators and vendors say to look first

These suggestions come from the sources above and have not been tested by us. They are ordered roughly by how directly they act on non-billable time.

Methodology and sources

The calculator uses this formula, taken from the site's implementation plan:

U_actual = (H_billable / (H_total − H_PTO)) × 100

The crew rate applies the same formula to summed hours: total billable hours across everyone divided by total available hours across everyone, where each person's available hours are their paid hours minus their PTO hours. The comparison box uses your result rounded to one decimal place. The dollar figure is the hours needed to reach the bottom of the target range multiplied by the billable rate you entered, and is shown only when you enter a rate.

What it leaves out: what the hours were billed at, whether jobs were priced profitably, callbacks that produce billable hours without revenue, overtime cost, and whether demand existed to fill more hours.

Benchmarks were gathered on by searching for published utilization figures for the trades and for professional services. We read the Deltek, ACHR News, FieldEdge, Simpro, Runn and GreenMargins pages, recorded what each one says its number measures, and show conflicts instead of choosing between them. Measured averages that state a sample size are given more weight than ranges from vendor blogs, and the two are labeled differently.

The full SPI Research report is gated and the Field Promax report was not available to us, so both are cited through the summaries below. Vendor sources sell software that measures utilization, which is a reason to treat their target ranges as guidance.

Sources

SourcePublishedUsed forBasis
Deltek: 2026 PSO benchmarks (SPI Research) July 30, 2026 66.4% (2025), 68.9% (2024), 73.2% (2021); 75% optimal threshold Summary of a survey of more than 500 firms. Deltek sponsors the report and sells project software.
ACHR News: only 65% of HVAC technician time is billable June 16, 2026 5.7 of 8.8 paid hours; 1.13 hours of unrecovered drive time; billable definition; efficiency suggestions Trade press summary of a Field Promax report covering more than 10,000 data points across 300 HVAC companies.
FieldEdge: technician utilization benchmarks June 3, 2026 Bands and ranges; paid-hours formula Vendor blog. Ranges are attributed to a third-party glossary.
Simpro: plumbing business KPIs March 13, 2026 Plumbing ranges; $10,400 per five points example Vendor blog. Gives two different averages in different sections.
ServiceTitan: field service metrics and HVAC labor rate calculator February 12, 2026 (guide) 60–80% strong; 30% and 50% efficiency assumptions Vendor guidance and a planning tool.
GreenMargins: landscaping overhead calculator Checked September 21, 2026 Landscaping range and target; seasonality warning Vendor page; no method or sample stated.
Runn: utilization rate benchmarks October 27, 2025 Accounting, consulting, marketing, architecture and engineering, legal Aggregator; links to underlying sources including a Journal of Accountancy survey and Deltek.
Monograph: utilization rate guide Checked September 21, 2026 Architecture and engineering median and range Vendor blog; source of the median not stated.
Rocketlane: 2026 professional services maturity benchmark April 2, 2026 The 70% figure that differs from Deltek's 75% Co-publisher of the SPI report; noted for the discrepancy only.

Frequently asked questions

What counts as a billable hour for a trade business?

The clearest published definition comes from a 2026 Field Promax report on HVAC technicians: time a contractor can charge the customer on the invoice, with drive time counted only where it is recovered through a trip charge or flat-rate pricing. If you price by flat rate, count time on jobs that produced revenue plus any travel your flat rate recovers. Pick one definition and keep it, because changing definitions changes the number without changing how the crew actually works.

Should I subtract PTO and holidays?

This calculator does, following U = billable hours ÷ (total paid hours − PTO hours) × 100. Some published benchmarks divide by all paid hours instead (FieldEdge's formula does), and the Field Promax HVAC figure is a per-working-day measure with no time off in it. To compare with those, enter 0 for PTO.

Do overtime hours count?

Yes, on both sides. Overtime hours are paid hours, so they belong in total paid hours, and any of them spent on billable work belong in billable hours. Leaving overtime out of the total while counting it as billable is the usual cause of a rate above 100%.

Is a higher utilization rate always better?

No. FieldEdge warns that a rate above 85% can raise the risk of technician burnout, and Field Promax suggests holding about 5% of each day open for same-day demand. A very high figure can also mean drive time and shop time are not being recorded. The right target depends on the trade, the season and how much emergency work you take.

Why do sources give such different benchmarks?

They measure different things and start from different data. Some divide by paid hours and some by available hours, and some count only invoiced time. Two are measured averages (SPI Research: 66.4% for professional services firms in 2025; Field Promax: 65% for HVAC technicians) and the rest are ranges from software vendors that do not state a method. ServiceTitan publishes 60–80% as strong in one guide and treats 30% as good in its labor rate calculators. The benchmarks table on this page shows each figure with its definition.

How is the crew rate different from averaging everyone's rate?

The crew rate adds up everyone's billable hours and divides by everyone's available hours, so people with more hours count for more. Averaging individual percentages gives every person the same weight regardless of hours. In the worked example on this page the two differ by 3.3 points.

What utilization do I need to cover my costs?

That depends on your wages, payroll costs, overhead and target margin, not on a benchmark. The technician billable hourly rate calculator takes your costs and a utilization assumption and returns the hourly rate you need to hit your margin.

Why is my result above 100%?

Billable hours exceeded available hours. The usual causes are overtime left out of total paid hours, hours that were actually worked entered as PTO, or the same hours recorded twice. Fix the inputs rather than reading it as unusual productivity.

Should I include the owner's and office staff's hours?

Include people whose time is meant to be billed. Office and dispatch time is non-billable by design and would pull the rate down without telling you anything about field efficiency. If an owner works in the field part of the time, include only the hours they were available to bill.

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