Hourly Drag Coefficient
Standard definition, mathematical formula, practical agency calculation walkthrough, and 2026 benchmarks.
Core Definition
Hourly Drag Coefficient is the ratio of internal non-billable overhead time required to support and invoice one hour of client-billable delivery.
In-Depth Practitioner Guide
For every hour an engineer bills to a client, the agency incurs ancillary drag: project management check-ins, client invoicing, status reporting, and timesheet auditing. Efficient agencies maintain a low drag coefficient (under 0.15), meaning only 9 minutes of overhead supports 60 minutes of billable output. Clunky timesheet tools artificially inflate this coefficient.
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Frequently Asked Questions
The ratio of internal non-billable overhead time required to support and invoice one hour of client-billable delivery.
For every hour an engineer bills to a client, the agency incurs ancillary drag: project management check-ins, client invoicing, status reporting, and timesheet auditing. Efficient agencies maintain a low drag coefficient (under 0.15), meaning only 9 minutes of overhead supports 60 minutes of billable output. Clunky timesheet tools artificially inflate this coefficient.
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