We introduce quantum utility , a new approach to evaluating quantum performance that aims to capture the user experience by considering the overhead costs associated with a quantum computation. A demonstration of quantum utility by the quantum processing unit (QPU) shows that the QPU can outperform classical solvers at some tasks of interest to practitioners, when considering the costs of computational overheads. A milestone is a test of quantum utility that is restricted to a specific subset of overhead costs and input types. We illustrate this approach with a benchmark study of a D-Wave annealing-based QPU versus seven classical solvers for a variety of problems in heuristic optimization. We consider overhead costs that arise in standalone use of the D-Wave QPU (as opposed to a hybrid computation). We define three early milestones on the path to broad-scale quantum utility. Milestone 0 is the purely quantum computation with no overhead costs and is demonstrated implicitly by positive results on other milestones. We evaluate the performance of a D-Wave Advantage QPU with respect to milestones 1 and 2: For milestone 1, the QPU outperformed all classical solvers in 99% of our tests. For milestone 2, the QPU outperformed all classical solvers in 19% of our tests, and the scenarios in which the QPU found success correspond to cases where classical solvers most frequently failed. This approach of isolating subsets of overheads for separate analysis reveals distinct mechanisms in quantum versus classical performance, which explain the observed differences in patterns of success and failure. We present evidence-based arguments that these distinctions bode well for annealing quantum processors to support demonstrations of quantum utility on ever-expanding classes of inputs and with more challenging milestones in the very near future.