Professional Services Profitability Metrics Efficiency

Realization Rate

Realization Rate: Actual revenue realized vs potential revenue at standard rates.

Formula

Realization Rate = Actual revenue / (Hours worked × Standard rate) × 100

Computable definition

The canonical formula in the GASP formula grammar. The MCP server compiles it to SQL over the datasets listed below.

sum(field.billed_revenue) / sum(field.billed_hours * field.standard_rate)

Unit: percent (the formula yields an unscaled ratio)

Notes: Hours worked at standard rate is taken from billable hours.

Data requirements

Grain: Monthly aggregate · Frequency: Monthly · Aggregation: aggregate (month) · Staged: no · Main source: PSA.

Field	Dataset	Type
`billed_hours`	time_entry	decimal
`billed_revenue`	time_entry	decimal
`entry_date`	time_entry	date
`standard_rate`	time_entry	decimal

Example SQL (Postgres)

SELECT (CAST((SELECT COALESCE(SUM(billed_revenue), 0) FROM time_entry WHERE entry_date >= :period_start AND entry_date <= :period_end) AS DOUBLE PRECISION) / NULLIF((SELECT COALESCE(SUM((billed_hours * standard_rate)), 0) FROM time_entry WHERE entry_date >= :period_start AND entry_date <= :period_end), 0)) AS realization_rate

From an agent: with the GASP MCP server, call lookup_metric({ "name": "Realization Rate" }) or generate_query({ "metric": "Realization Rate", "adapter": "<your adapter JSON>" }).

Benchmarks

Below 80%: Significant discounting or write-offs
80-90%: Average
90-100%: Good pricing discipline
Above 100%: Premium pricing achieved

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