Realization Rate Calculator
Tracked hours don't always become invoiced revenue. Find out where your money leaks.
Compare billed revenue with the value of recorded hours at your standard rate. Calculate realization and see the revenue gap.
Frequently Asked Questions
What's the difference between utilization and realization?
Utilization measures what share of your available time goes to billable work. Realization measures what share of that billable work converts into actual invoiced revenue. High utilization with low realization means your team is busy, but much of the effort isn't reaching the invoice.
What's a healthy realization rate?
Top professional services firms target 90% to 95%. Anything below 85% reliably indicates systematic write-offs, scope creep absorption, or aggressive discounting. The goal isn't 100% — small goodwill adjustments are normal — but a persistent gap below 85% warrants a root-cause review.
Why does revenue leak between tracking and billing?
The most common causes: hours logged on tasks outside the agreed scope that never appear on the invoice, fixed-fee projects that overrun their hour budget, courtesy write-offs for client relationships, and billing delays that let estimates drift from reality. Each leak is fixable once you can measure it.
How does scope creep affect this?
Scope creep that isn't captured in a change order shows up directly as realization loss. If a 100-hour project runs to 130 hours but you invoice only the original scope, those extra 30 hours have 0% realization. Tracking scope variance in Teetrack makes this visible before you close the project.
Can Teetrack flag low-realization projects?
Yes. Teetrack compares tracked hours against billed time and surfaces projects where realized revenue per hour falls below your standard rate. You get an early warning while the project is still open, when you can still negotiate an adjustment or at minimum understand the margin impact before the invoice is final.