An accounting method and multi-threaded processor include a mechanism for accounting for processor resource usage by threads within programs. Relative resource use is determined by detecting a particular cycle state of threads active within the processor. If instructions are dispatched for all threads or no threads, the processor cycle is accounted equally to all threads. Alternatively if no threads are in the particular cycle state, the accounting may be made using a prior state, or in conformity with ratios of the threads' priority levels. If only one thread is in the particular cycle state, that thread is accounted the entire processor cycle. If multiple threads are dispatching, but less than all threads are dispatching, the processor cycle is billed evenly across the dispatching threads.