How It Works
Three simple steps to get accurate calculations
1
Enter Team Size
Input team members and hours available.
2
Set Utilization
Enter current billable percentage.
3
Add Rates & Costs
Set hourly rate, salaries, overhead.
4
Get Analysis
See revenue ceiling and hiring triggers.
Loading Freelance Agency Utilization Calculator...
Frequently Asked Questions
What is a good utilization rate?
65-75% is healthy for most agencies. Below 60% = underutilized (profit issue). Above 80% = over capacity (quality/burnout risk). Target depends on role: Designers 70%, developers 75%, PMs 60%.
How do I calculate revenue ceiling?
Revenue ceiling = (Team × Hours × Max utilization × Rate × 4.33 weeks). At 85% sustainable utilization. This is your growth cap without hiring.
When should I hire?
Hire when: Utilization consistently above 80%, turning away work, quality dropping, overtime increasing. Start hiring process at 75-80% - by the time they're productive, you'll need capacity.
What is revenue per employee benchmark?
Agency benchmarks: $150-200K/year for junior, $200-300K mid-level, $300K+ senior/specialized. Top agencies exceed $250K average across team.
How do I improve utilization?
Tactics: Better project scoping, reduce context switching, pipeline planning, process automation, fewer internal meetings, better tooling, scope management, retainer clients.
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Results are estimates for informational purposes only. Consult professionals for important decisions.