Capacity Planning Calculator

Most healthy service businesses target 70 to 80 percent for billable staff. Below 65 percent suggests pipeline or staffing problems; above 85 percent for sustained periods leads to burnout and quality slippage. Use 75 percent as a conservative starting point and adjust as you track actuals.

PTO is not built into this model directly. To account for vacation and holidays, reduce the per-person weekly hours or run the monthly and annual figures yourself using fewer active weeks. A common approach is to plan at 75 percent utilization over 46 to 48 working weeks and treat the remaining weeks as the PTO buffer.

Only include managers if they actively deliver billable work. A delivery manager who also runs client engagements counts. A pure team lead spending most of their time in internal meetings and one-on-ones does not. Inflating team size with non-billable heads overstates your capacity and leads to over-commitment.

The billable hours calculator focuses on a single person: how many hours one individual can invoice over a year. This calculator scales across a team and focuses on aggregate planning horizons — the weekly, monthly, and annual capacity you can commit to when staffing projects and responding to RFPs.

Teetrack tracks time at the project and person level, so your actual utilization data feeds directly into capacity planning. Once your team is logging hours, you can see realized utilization per role and refine the assumptions you enter here with real numbers rather than estimates.