Agency Profit Calculator: Find Your Hidden Billable Hours
Agencies and professional services teams lose 6–30% of billable hours depending on tracking discipline. This calculator shows how much revenue your team is missing from context switching, admin work, and forgotten time entries.
How margin leakage works
Most agencies calculate profit by subtracting costs from revenue. What they miss is the cost of untracked work — context switching, admin tasks, and sessions under 15 minutes that never make it onto a timesheet. This is margin leakage: the gap between what your team actually works and what gets billed.
Utilization Rate = Billable Hours ÷ Total Available Hours × 100. The industry benchmark is 70–80%. If your team tracks time manually, reported utilization is likely 10–20 points below reality. This calculator estimates the revenue hiding in that gap.
Frequently Asked Questions
How do you calculate agency profitability per project?
Agency profitability per project is calculated by subtracting total cost (staff hours × fully-loaded rate + overhead) from billable revenue. The most common leak is untracked time — context switching, short tasks, and end-of-day rounding. Rize captures every work session automatically, so the hours you report reflect what was actually worked. Agencies using Rize typically recover 15–30% more billable time compared to manual trackers.
What is a good utilization rate for agencies?
A healthy agency utilization rate is 70–80% for billable staff. Below 60% usually means too much non-billable work or poor time capture. Above 85% risks burnout. The gap between reported and actual utilization is where automatic time tracking pays off most — Rize runs in the background and captures the work that manual methods miss, giving managers an accurate picture without asking employees to log every minute.
How much revenue do agencies lose to untracked billable hours?
Agencies using manual time tracking typically lose 6–30% of billable hours depending on team discipline. For a 10-person agency billing at $150/hour, even a 10% gap means over $300,000 in lost revenue per year. The biggest culprits are context switching, tasks under 15 minutes, internal meetings, and end-of-day rounding. Momentum Studio recovered 20% more billable time after switching to Rize's automatic time tracking.