Calculate your result
How this calculator works
This tool is designed for agencies and professional-services teams managing utilization, staffing and delivery capacity. Capacity is constrained by billable time, skill mix and timing—not headcount alone. The calculator applies the displayed commercial formula to the values you enter and avoids hidden benchmark assumptions.
The formula is derived directly from the labeled inputs shown in the calculator.
Use the right inputs
Use figures from the same time period and the same cost definition. Required inputs on this calculator are Contractor hourly rate, Hours needed per year, Employee salary, Employee burden. If an amount already includes overhead or employer burden, do not add the same cost again elsewhere.
How to interpret the result
The result is decision support, not a universal target. Read utilization, margin, realized rate and demand together before hiring or cutting capacity. A change in one assumption can materially change the answer, especially when margin or billable utilization is involved.
Common mistake
Optimizing utilization in isolation can create burnout or still leave weak margins if realized rates are too low.
Decision checklist
- Make sure every input covers the same period or project.
- Use actual hours and costs when they exist; label estimates as estimates.
- Re-run the calculator when scope, price, cost or capacity changes.
- Keep the result together with the assumptions that produced it.
Limitations
SheryPro does not infer taxes, employment classification, legal fee rules, contract language, client demand or jurisdiction-specific requirements. The calculator uses only the inputs shown. Changing third-party pricing is sourced and dated where a provider-specific figure is used.