Metrics glossary — the formulas behind Operating's numbers

Written By Lauri Eurén

Last updated 4 months ago

Quick reference for the numbers Operating reports: what each is in one line, its formula, and where to read more. Definitions live in the glossary; formulas and worked examples live in the linked articles.

People & capacity

Metric

One-line formula

Read more

Utilization

(numerator ÷ denominator) × 100%.

We let you customize your utilization formula. You choose which kinds of work go in the:

numerator (the time you're measuring) and the
denominator (the time you measure it against).

See the article linked in the next column for more details

Utilization calculation

Capacity

available working time, shown as % booked / % available — plans only

Capacity, time off, allocation

Profitability on work (planned or actual)

Metric	One-line formula	Read more
Revenue	Work revenue + billable-expense revenue. Work revenue by billing type: T&M = rate × hours fixed-price = Budget share by recognition method capped T&M = rate × hours capped at Budget non-billable = 0	Revenue, cost, gross profit, and margin
Cost	work cost + expense cost (work cost = cost rate × hours; same on every billing type)	Revenue, cost, gross profit, and margin
Gross profit	revenue − cost	Revenue, cost, gross profit, and margin
Margin	gross profit ÷ revenue × 100% (undefined at zero revenue)	Revenue, cost, gross profit, and margin

Planned (forward-looking)

Metric

One-line formula

Read more

Planned revenue

planned work revenue + billable Planned-expense revenue.

Work
- T&M: allocation % × billing rate × working hours
- Fixed Price: Budget share by recognition method

Planned revenue & Planned Costs

Planned cost

planned work cost + planned expense cost

(work = allocation % × cost rate × working hours; same on every billing type)

Planned revenue & Planned Costs

Per-hour and budget metrics in the Projects list view give you a quick read on how efficiently revenue is being generated and how far through your budget you are.

Per-hour and budget (Projects list view)

Metric	One-line formula	Read more
Planned revenue per hour	planned revenue ÷ planned hours (uses the project's confirmed planned total when it's confirmed, the tentative total when it's tentative)	Planned revenue & cost
Earned revenue per hour	earned (recognized) revenue ÷ tracked hours	Earned vs. invoiced revenue
% of budget spent	earned (recognized) revenue ÷ total project budget. Despite the "spent" label it tracks recognized revenue against the budget, not cost.	How revenue recognition works in Operating

Recognized, invoiced & forecast

Metric	One-line formula	Read more
Earned (recognized) revenue	value of completed billable work + billable expenses, by billing type: T&M = tracked time × rate Capped T&M = T&M capped at Budget Fixed-price = Budget by recognition method	Earned vs. invoiced revenue
Invoiced revenue	whatever is placed on invoices — pre-filled from Time entries/Expenses (T&M) or the Budget on a schedule (fixed-price), but you can exclude work, re-price lines, or add freeform amounts, so it can differ from earned	Earned vs. invoiced revenue
Planned vs. actual	planned (allocations/budgets) compared against actuals (tracked time/expenses)	Planned vs. actuals
Projected / forecasted	actuals up to the forecast cut-off + plan beyond it	Revenue Forecasting

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