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Notes on billing by the hour

Utilization, effective hourly rate, scope creep, pricing models, and how to get a team to track time without anybody resenting it. No listicles.

A scale from nought to one hundred percent with the sixty five to eighty percent target band marked. Illustration for How to calculate agency utilization rate (and the number to aim for).
9 August 2026 · 3 min read

How to calculate agency utilization rate (and the number to aim for)

Utilization is the most quoted and least understood number in agency operations. Here is the formula, the benchmarks, and the three ways the calculation goes quietly wrong.

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Numbers like these, without the spreadsheet

Utilization, effective hourly rate and project margin, straight out of tracked time.

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