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What is realisation rate and how is it calculated?
Realisation rate is the revenue you actually bill (or collect) divided by the value of time recorded at standard rates, multiplied by 100. It shows how much of the time you put in is turned into fees.
Example: 80,000 billed for work recorded at a standard value of 100,000 gives 80 percent.
It matters because gaps arise from discounts, write-offs, fixed-fee overruns and unbilled time.
Commonly misread:
- Billing realisation (billed over recorded value) differs from collection realisation (collected over recorded value). Label which you report.
- Using outdated standard rates.
- Reading an overall rate without separating clients and services.
Break it down by client, fee type and team to find where value leaks, and check write-off reasons.
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