Glossary
What Is Technician Utilization Rate?
Defined for HVAC, plumbing, and electrical operators.
Definition
Technician utilization rate is the share of a technician's paid hours that are billable to a customer, calculated as billable hours divided by total paid hours. For home-services contractors it's one of the most important operating metrics: a tech paid for 40 hours who bills 26 is running 65% utilization, and every unbilled hour is drive time, idle time, or unpaid rework. Well-run shops typically target 60–75% utilization; small gains compound quickly because they add billable revenue with no new headcount.
The Formula
Utilization = billable hours ÷ total paid hours. If a technician is paid for 40 hours in a week and 26 of those are billed on jobs, utilization is 65%. Track it per technician and as a team average.
Why It's High-Leverage
Utilization improvements add revenue without adding payroll. Moving a team from 60% to 68% utilization is the equivalent of gaining billable capacity for free — which is why tightening dispatch density, cutting windshield time, and reducing callbacks often beats hiring another tech.
Technician Utilization Rate FAQs
How do you calculate technician utilization rate?
Divide billable hours by total paid hours. A technician paid for 40 hours who bills 26 hours is at 65% utilization.
What is a good technician utilization rate?
Well-run home-services shops typically target 60–75%. Below ~55% usually signals dispatch inefficiency, excess drive time, or unbilled rework.
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