Quick answer: utilization = billable hours / total hours x 100. Billing 28 of 42 hours is 66.7%, and at 95 an hour each hour at work is really worth 63.33.
Why the effective rate matters
The billing rate only applies to billable time. Admin, sales calls, travel and training are paid by the billable hours, so the effective rate (revenue / all hours worked) is the real value of an hour of your time. Raising utilization from 60% to 70% at the same rate is a 16.7% rise in revenue.
To set a rate that reaches a target income at your real utilization, use the contractor rate calculator.
Setting your rate from scratch? Start with the contractor rate calculator.
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Questions
What is a normal utilization rate?
It varies by firm and role; many service businesses plan well below 100% because some time is always non-billable. Set targets from your own time records.