Billable Hours Calculator
Calculate billable hours, revenue, and utilization rate
Includes admin time, training, breaks, etc.
How to Use This Calculator
Enter total hours worked
Input the total number of hours worked in the period (e.g., per week, month, or project).
Enter non-billable hours
Input hours spent on non-billable activities like administration, training, breaks, internal meetings, or business development.
Enter hourly billing rate
Input your hourly rate charged to clients for billable work.
Calculate results
View your billable hours, total revenue, and utilization rate to understand your productivity and earnings.
Formula
Billable Hours = Total Hours - Non-Billable Hours
Revenue = Billable Hours × Hourly Rate
Utilization Rate = (Billable Hours / Total Hours) × 100%
Example:
Total Hours = 160, Non-Billable Hours = 20, Hourly Rate = $100
Billable Hours = 160 - 20 = 140 hours
Revenue = 140 × $100 = $14,000
Utilization Rate = (140 / 160) × 100% = 87.5%
About Billable Hours Calculator
The Billable Hours Calculator is an essential tool for professionals who bill clients by the hour, including consultants, lawyers, accountants, freelancers, and service providers. Understanding your billable hours versus total hours worked is crucial for profitability, pricing decisions, and business planning. This calculator helps you determine how many hours you can actually bill to clients after accounting for non-billable activities such as administrative tasks, business development, training, internal meetings, breaks, and other overhead activities. The calculator also computes your total revenue potential and utilization rate, which is a key performance metric that measures the percentage of your total working hours that are billable to clients. A high utilization rate indicates efficient time management and good profitability, while a low rate may suggest you need to reduce non-billable activities or adjust your pricing strategy. This tool is particularly valuable for freelancers and independent contractors who need to track their productivity, for agencies managing teams of billable professionals, and for anyone trying to optimize their work schedule to maximize billable time. By understanding your billable hours, you can make informed decisions about pricing, workload management, and business growth strategies. The calculator also helps identify opportunities to improve efficiency and increase revenue by highlighting the relationship between total hours worked, billable time, and earnings potential.
When to Use This Calculator
- Time tracking: Calculate billable hours from time logs
- Pricing decisions: Understand revenue potential at different rates
- Productivity analysis: Measure utilization rate and efficiency
- Business planning: Forecast revenue based on billable hours
Why Use Our Calculator?
- ✅ Quick calculation: Instantly determine billable hours and revenue
- ✅ Utilization tracking: Measure your productivity and efficiency
- ✅ Free tool: No registration or payment required
- ✅ Business insights: Understand the relationship between hours and earnings
Frequently Asked Questions
What are non-billable hours?
Non-billable hours are time spent on activities that cannot be charged to clients, such as administrative tasks, business development, training, internal meetings, breaks, and other overhead activities.
What is a good utilization rate?
A good utilization rate varies by industry and role, but generally 70-85% is considered healthy for most professionals. Rates above 90% may indicate burnout risk, while rates below 60% may suggest inefficiency or pricing issues.
How can I increase my billable hours?
Strategies include reducing non-billable activities through automation and delegation, improving time management, setting clear boundaries, and optimizing your workflow to minimize administrative overhead.
Should I include breaks as non-billable?
Yes, breaks, lunch, and personal time should typically be counted as non-billable hours since they cannot be charged to clients.
Can I use this for team calculations?
Yes, you can use this calculator for individual team members or aggregate team totals to understand overall team utilization and revenue potential.