Utilization rate
What is Utilization rate?
The percentage of a person's available time that is spent on billable work.
Utilization is a core agency health metric, but high utilization on unprofitable work still loses money. It must be read alongside realization and margin.
Related terms
- Work in progress (WIP)Work that has been delivered or started but not yet invoiced to the client.
- Velocity (sprint estimation)The amount of work a team consistently delivers in a sprint, measured in story points or hours.
- Per-role ratePricing time at a different rate for each role (designer, developer, strategist) instead of a single blended figure.
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