Billable Hours Calculator

Billable hours are the hours you worked that are chargeable to a client. To calculate your billable revenue, multiply your billable hours by your hourly rate. If you have expenses or discounts, those are added or subtracted from that subtotal to arrive at your final invoice amount.

Billable hours are time spent directly on client work that you can charge for — such as project delivery, consulting, or legal representation. Non-billable hours are work time that cannot be invoiced, such as internal meetings, administrative tasks, business development, or training. Tracking both helps you understand the true cost of running your business.

Billable efficiency (also called utilization rate) is the percentage of your total working hours that are billable. For example, if you worked 40 hours and 32 were billable, your efficiency is 80%. A higher rate means more of your time is generating revenue. Most professional services firms target a billable efficiency between 70% and 85%.

Your effective hourly rate is your total invoice amount divided by all hours worked (billable + non-billable). It reflects what you actually earn per hour of effort, factoring in the unpaid time you spend on non-client tasks. It's a useful number for pricing projects and evaluating profitability.

Freelancers, consultants, lawyers, accountants, designers, developers, and agencies all commonly bill by the hour. A billable hours calculator helps anyone who charges clients for their time to quickly total up hours, apply a rate, add expenses, and produce an accurate invoice figure without manual math.

Many law firms bill in 0.1-hour (6-minute) increments because it provides a standardized, precise way to track time without rounding up to larger blocks. This approach is an industry standard that helps clients see detailed, fair billing while enabling attorneys to capture time accurately throughout the day.

Yes, if your client agreement allows for reimbursable expenses — such as travel, software subscriptions, or subcontractor costs — you can add these to the invoice. This calculator includes an optional expenses field so those costs are included in your total invoice amount alongside your billable hours revenue.

You can apply a discount either as a flat amount (e.g. reduce the invoice by $200) or as a percentage of your billable revenue (e.g. 10% off). This calculator supports both options — just select the discount type and enter the value, and the discount will be automatically deducted from your total invoice amount.