Utilization Rate Calculator
Divide the hours worked by the hours available to get the utilization rate. If the rate is above 100%, a note under the result explains what that means.
How the utilization rate is calculated
- Utilization rate (%) = hours worked ÷ hours available × 100
- Unused hours = hours available − hours worked
- The hours available can also be worked out as people × days × hours per day (5 people × 20 days × 8 hours = 800 hours).
The rate is rounded to 2 decimal places (the third decimal place is rounded to nearest). The calculation uses exact arithmetic, so there is no floating-point error.
When the rate is above 100%
If the hours worked are more than the hours available, the rate is above 100%. This is not an error. It means the hours worked exceeded the hours you expected to have available. Common reasons are:
- There was overtime or work on days off.
- The hours available were set too low (for example, people or days were left out).
When the rate is above 100%, the result shows the hours over capacity (hours worked minus hours available). A rate of exactly 100% means the hours worked equal the hours available, with no unused hours. If the hours available are 0, the rate cannot be calculated because it would divide by 0.
Examples
- 140 hours worked out of 160 available is 87.50% (20 unused hours).
- 170 hours worked out of 160 available is 106.25% (10 hours over).
- 700 hours worked out of 800 available (5 people × 20 days × 8 hours) is 87.50%.
Notes
- The hour boxes accept decimals (up to 9 digits before the decimal point and 6 after). Use a period as the decimal separator; commas are accepted only as thousands separators.
- Definitions of utilization differ between industries and purposes (equipment, staff, servers and so on). A consulting team might count only billable hours, for example. This tool does the simple calculation hours worked ÷ hours available. Other measures, such as overall equipment effectiveness (OEE), are not covered.
- Decide beforehand what counts as available time (breaks, paid leave, meetings and so on) and use the same rule each time.
- For the availability of a service as a percentage of time, see the Uptime SLA Calculator.
Frequently asked questions
Is a utilization rate above 100% a mistake?
No. It means the hours worked were more than the hours expected to be available. It happens with overtime, work on days off, or when the available time was set too low.
What is a good utilization rate?
It depends on the industry and the purpose, so this tool does not give a target. The closer to 100%, the less spare capacity there is, and the lower the rate, the more unused time.
How should I decide the hours available?
A common way is people × days × scheduled hours per day. Whether to subtract breaks or leave is up to the purpose of the report; use the same rule every time.