#765 · Business Tool

Agency Inventory Calculator

Use this agency inventory calculator as a capacity calculator to measure billable hours, utilization, unused capacity value, and burnout risk.

Calculator

Capacity and utilization inputs
hours
hours
hours
$ / hr
%
Ad space

How to use this calculator

For an agency, inventory is billable capacity. Enter available team hours, billable hours sold, non-billable hours, average billable rate, and target utilization.

What the result means

Utilization below target means unused revenue capacity. Utilization above 90% may mean the team is overloaded and quality or retention can suffer.

Utilization = Billable Hours ÷ Available Team Hours × 100. Unused Capacity Value = Unused Hours × Average Billable Rate.

Do not push utilization to 100%. Agencies need non-billable time for management, training, sales, process improvement, and quality control.

Example calculation

If available hours are 1,200 and billable hours are 840, utilization is 70%. At $125 per hour, unused target capacity has meaningful revenue impact.

Tips for better results

  • Separate billable and non-billable work every week.
  • Protect non-billable time for systems and sales.
  • Hire only when utilization is sustainably high.

FAQ

What utilization rate should an agency target?

Many agencies target 70% to 85% utilization, balancing billable work with management, sales, and quality control.

How many billable hours should agency employees have?

Billable hour expectations depend on role, seniority, service model, and how much non-billable work the employee owns.

What is agency capacity planning?

Agency capacity planning estimates how much billable work a team can deliver without overloading staff or reducing quality.

How much revenue is lost from unused capacity?

Unused capacity value equals unused billable hours multiplied by average billable rate.

How do agencies increase utilization?

Increase utilization through better scheduling, clearer scopes, fewer internal meetings, and stronger pipeline planning.

Agency decision module

MetricMeaning
Main ResultPrimary agency KPI for this decision.
Health Score0 to 100 score based on margin, utilization, cash flow, or ROI.
BenchmarkAgency benchmark comparison for quick diagnosis.
RecommendationAutomatic action based on the result.

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