1,344 is the example result. Read it using the units and relationship stated below.
Billable Hours uses available hours per week, target utilization, weeks.
Protecting contribution before accepting a price
For billable hours, the relationship is Result = [Available hours per week] × ([Target utilization] ÷ 100) × [Weeks]. The amount depends on the supplied available hours per week, target utilization, rather than a live market price or a value imported from another record. A quote can meet a revenue target and still leave too little to cover delivery. Separate the selling-price denominator from the cost denominator: margin and markup answer different questions. A discount changes contribution even when the supplier cost stays fixed.
What the model includes
Result = [Available hours per week] × ([Target utilization] ÷ 100) × [Weeks] A pricing review should retain the supplier cost, sale price and the reason for any allowance. Returns, payment charges, delivery and tax require explicit treatment; they should not disappear inside a percentage labelled profit. Compare the proposed price with the customer agreement and delivery capacity. A mathematically achievable margin does not establish that buyers will accept the offer.
Example with the supplied inputs
Available hours per week: 40; Target utilization: 70; Weeks: 48. Result: 1,344. The values are illustrative.
Compare one changed input
Target utilization changes from 70 to 77. The result becomes 1,478.4. All other inputs remain fixed.
Calculation rule
Result = [Available hours per week] × ([Target utilization] ÷ 100) × [Weeks]
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Available hours per week | 40 | Use the duration unit stated in available hours per week. A time period is not interchangeable with a currency amount or a count of events. |
| Target utilization | 70 | Enter target utilization on the percentage scale used in the formula (20 means 20%, not 0.20). Keep its base and reporting period consistent with the other inputs. |
| Weeks | 48 | Use the duration unit stated in weeks. A time period is not interchangeable with a currency amount or a count of events. |
Output: 1,344 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Available hours per week, Target utilization, Weeks. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Target utilization on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 1,344.
Change Target utilization from 70 to 77 while keeping every other value fixed. The result becomes 1,478.4. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026