--- title: "utilization rate: Definition and Meaning | NPSA" description: "A utilization rate is the share of time that rental assets earn money. InTempo Software defines time utilization as how often assets are rented out." url: https://npsa.preview.multisites.ai/glossary/utilization-rate publisher: National Portable Storage Association (NPSA) phone: "(816) 960-6552" email: info@npsa.org --- Leasing and finance # utilization rate A utilization rate is the share of time that rental assets earn money. InTempo Software defines time utilization as how often assets are rented out. It is calculated as days on rent divided by days available. For example, 25,000 rented days out of 36,500 gives 68.5 percent. ## Why it matters Utilization shows whether a fleet is too big, too small or well sized. An operator with many idle containers carries cost without income. One with no spare units may turn away orders. Rates differ by season and by unit type, so track each size and type on its own. A common mistake is to count units in the yard as available for rent when they need repair. Time utilization also ignores price, so a busy fleet with low rates can still earn little. Operators often review utilization monthly and compare it with revenue per unit. [Read: How to price a container rental fleet](https://npsa.preview.multisites.ai/guides/pricing-a-container-rental-fleet) Definition source: [intemposoftware.com](https://www.intemposoftware.com/blog/equipment-rental-metrics-time-dollar-utilization) ## Related terms [### fleet utilization Fleet utilization is the percentage of a fleet's available time that it spends on productive, revenue-generating work. AUTOsist gives the formula as total utilized time divided by total available time, times 100. In a rental business, it shows how much of the fleet is working.](https://npsa.preview.multisites.ai/glossary/fleet-utilization)[### per diem Per diem is Latin for "per day." In container leasing, it is the daily rate a lessee pays for each day a leased container is on-hire after any included free days. Lessors use it to price short and flexible leases, and it adds up quickly on idle units.](https://npsa.preview.multisites.ai/glossary/per-diem)[### on-hire On-hire is the point when a lessee takes possession of a leased container. One Way Lease says the condition is documented on the equipment interchange receipt, and the on-hire record starts the clock. The term comes from container leasing and applies to similar equipment deals.](https://npsa.preview.multisites.ai/glossary/on-hire)[### off-hire Off-hire is the end of a container lease when the lessee returns the unit. One Way Lease describes it as the return process: the depot does a condition survey, the lease closes and the unit comes off the lessee's books. The term is common in container leasing.](https://npsa.preview.multisites.ai/glossary/off-hire)[### rental rate A rental rate is the price charged for keeping a container for a billing period, often a month. Complete Container Services says a monthly rental rate generally refers to the cost of keeping the container for the agreed rental period. Delivery and pickup may be billed separately.](https://npsa.preview.multisites.ai/glossary/rental-rate)[### depreciation Depreciation is an annual income tax deduction that lets a business recover the cost of property over the time it uses the property. The IRS describes it as an allowance for wear and tear, deterioration or obsolescence. Containers, trailers and trucks used in a business are common examples.](https://npsa.preview.multisites.ai/glossary/depreciation) [All 220 terms](https://npsa.preview.multisites.ai/glossary) For the industry ## Grow your portable storage business with NPSA Members get event rates, the Community Forum, the directory listing and leads from this website. [Join NPSA](https://npsa.preview.multisites.ai/join-us)[See member benefits](https://npsa.preview.multisites.ai/member-benefits) Need storage? ## Get quotes from NPSA member companies Tell us what you need and where. A member company that serves your area will contact you. [Request a quote](https://npsa.preview.multisites.ai/request-a-quote)[Which unit do I need?](https://npsa.preview.multisites.ai/find-storage)