Enter the billable hours and the available hours into the Calculator. The calculator will evaluate the Labor Utilization. 

Labor Utilization Formula

LU = BH / AH * 100

Variables:

  • LU is the Labor Utilization (%)
  • BH is the billable hours
  • AH is the available hours

To calculate Labor Utilization, divide the total billable hours by the available or maximum hours, then multiply by 100.

How to Calculate Labor Utilization?

The following steps outline how to calculate the Labor Utilization.

  1. First, determine the billable hours. 
  2. Next, determine the available hours. 
  3. Next, gather the formula from above = LU = BH / AH * 100.
  4. Finally, calculate the Labor Utilization.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

billable hours = 300

available hours = 700