Margin One
What is technician utilization rate?
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.
Common questions
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.
Related terms
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