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Billable Hours Calculator

Calculate billable hours, billable utilization, and estimated revenue based on your work time, non-billable time, and hourly rate.

Your Details

Overview

A billable hours calculator helps you work out how much of your time can be invoiced and what that time may be worth. Enter your total hours worked, subtract non-billable time such as admin or meetings, and add your hourly rate to estimate billable hours, utilization, and revenue.

How it works

The calculator subtracts non-billable hours from total hours worked to find billable hours. It then divides billable hours by total hours to estimate billable utilization as a percentage. Estimated revenue is calculated by multiplying billable hours by your hourly rate. It also compares your billable hours with your target to show whether you are ahead or behind.

How to use this calculator

  1. 1Enter the total hours you worked in the period.
  2. 2Add the hours that were non-billable.
  3. 3Enter your hourly billing rate.
  4. 4Set your target billable hours for comparison.
  5. 5Review your billable hours, utilization rate, and estimated revenue.

Example Calculation

Total hours worked

40

Non-billable hours

8

Hourly rate

$120

Target billable hours

30

Billable hours

32.00 hours

If you worked 40 hours, spent 8 on non-billable tasks, and charged 120 per hour, your billable hours would be 32, your utilization would be 80%, and your estimated revenue would be 3840.

Frequently asked questions

What are billable hours?

Billable hours are the hours you can charge directly to a client or project under your pricing agreement.

What counts as non-billable time?

Non-billable time usually includes admin work, internal meetings, training, proposals, marketing, and other tasks you cannot invoice.

How is billable utilization calculated?

Billable utilization is calculated by dividing billable hours by total hours worked, then multiplying by 100.

Can I use this calculator for weekly or monthly tracking?

Yes. You can use it for any period as long as all entries relate to the same timeframe.

Does this calculator work for fixed-fee projects?

It can still help track time usage, but estimated revenue is most accurate when you bill by the hour.

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Assumptions and warnings

Assumptions

  • All billable hours are charged at the same hourly rate.
  • Non-billable hours are included within total hours worked.
  • The calculation is for a single period, such as a day, week, or month.
  • Revenue is estimated before taxes, fees, write-offs, or uncollected invoices.

Warnings

  • This calculator provides an estimate only and is not financial advice.
  • Actual revenue may differ if you use different rates, discounts, caps, or fixed-fee billing.