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1,500 hours out of 2,000
The shop can run 2,000 hours. You use 1,500 of them. Each used hour brings 85 of revenue, and you keep that rate for the comparison.
Available hours: 25% lower
Change available hours to 1,500 hrs while keeping the other example values the same.
Available hours: 25% higher
Change available hours to 2,500 hrs while keeping the other example values the same.
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Quick answer
What does the Capacity utilization revenue calculate?
How much of your capacity is in use, and what revenue does it produce? This calculator uses available hours, used hours, and revenue per used hour to estimate hours in use immediately in your browser.
With the values currently entered, the result is 75% — of available hours used. It also shows revenue at this use, revenue at full capacity, and revenue in unused hours.
How to use the Capacity utilization revenue
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Available hours — entered in hrs
- Used hours — entered in hrs
- Revenue per used hour — entered in / hr
Capacity utilization revenue formula
Utilization = used hours ÷ available hours. Revenue = used hours × revenue per hour. Full-capacity revenue uses available hours at the same rate.
Assumptions
- The Federal Reserve G.17 release defines capacity utilization as output divided by capacity. Here those two figures are the hours you type, not the industrial index.
- Revenue per hour stays the same for used hours and for any unused hours. A discount to fill the schedule belongs in the rate box.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Capacity utilization revenue example and edge cases
The Federal Reserve defines capacity utilization as output divided by capacity. For a shop, that is used hours divided by the hours you can actually run. Revenue at that use is those hours times the rate you charge for one of them.
Example: 1,500 hours out of 2,000
The shop can run 2,000 hours. You use 1,500 of them. Each used hour brings 85 of revenue, and you keep that rate for the comparison.
- Available hours
- 2,000 hrs
- Used hours
- 1,500 hrs
- Revenue per used hour
- 85 / hr
Calculated result75%of available hours used
Utilization is 75 percent. Those hours produce 127,500. Full capacity at the same rate would produce 170,000, so 42,500 of revenue sits in the unused 500 hours.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the percent first, then the revenue at this use. Unused-hour revenue is a ceiling only if you can sell those hours at the same rate.
- The Fed figure is an industry index. This page uses the hours you type, so it describes your shop.
Edge cases worth checking
A second shift is not free capacity
Available hours should be hours you can staff and power. An open building is not the same as a crew that can work those hours.
Idle time sells only at a lower rate
Unused-hour revenue assumes the same 85. A discount to fill the schedule lowers that line. Put the lower rate in the box before you treat 42,500 as money you can collect.
What changes the result most
Available hours
Change available hours on its own first. This shows how strongly it affects the answer.
Used hours
Change used hours on its own first. This shows how strongly it affects the answer.
Revenue per used hour
Use a current amount for revenue per used hour. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Available hours: 25% lower
1,500 hrs100%of available hours used
Available hours: 25% higher
2,500 hrs60%of available hours used
Used hours: 25% higher
1,875 hrs93.8%of available hours used
Common mistakes
Check available hours
The Federal Reserve G.17 release defines capacity utilization as output divided by capacity. Here those two figures are the hours you type, not the industrial index. Make sure this matches the number you enter.
Keep revenue per used hour consistent
Revenue per hour stays the same for used hours and for any unused hours. A discount to fill the schedule belongs in the rate box. Use the same units and time period throughout the calculation.
Do not rely on one capacity utilization revenue scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
How much of your capacity is in use, and what revenue does it produce?
It does not replace a quote, contract, accountant, or local employment guidance.