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.

- First, determine the billable hours.
- Next, determine the available hours.
- Next, gather the formula from above = LU = BH / AH * 100.
- Finally, calculate the Labor Utilization.
- 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