How utilization is calculated in Operating

Utilization (sometimes lovingly called ‘utz’) is the most commonly used KPI for consulting company efficiency. Operating calculates utz like this:

Written By Matti Parviainen

Last updated 3 months ago

This page is outdated as of 2025-11-13. Watch a video about the new utz formula builder.

Old page below for historical reasons:

utz = b / (e - o)

  • b = billable hours worked during a time period (e.g. one week)

  • o = time off during a time period (sick leave, paid/unpaid leave, whatever the reason)

  • e = expected working hours during a time period (e.g. 40 hours per week)

Worked four days on client work, took Friday off

  • b = 30h

  • o = 7,5h

  • e = 37,5

    • utz = 30 / (37,5 - 7,5) = 100%

Worked 25h on client work, spent the rest of the week doing internal stuff – notice how the amount of non-billable hours do not affect the utz.

  • b = 25h

  • o = 0h

  • e = 40h

    • utz = 25 / (40 - 0) = 62,5%

Part-time working hours agreed, but working full-blast on client stuff

  • b = 37h

  • o = 0h

  • e = 22,5h (three 7,5h days per week)

    • utz = 37 / (22,5 - 0) = 164,4%

    • Of course, billable hours like this should lead to a change in their individual working hours settings. Adjust the settings to match reality, and the utz numbers will make more sense.

In case you imported time entries using the API, a CSV file or the Harvest connect, you’ll find a visualisation of those entries at use.operating.app/reports/metrics.