Billable Hours Calculator
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This billable hours calculator shows how many of your working hours you can actually charge for. Enter your weekly hours, non-billable time, hourly rate and working weeks to see weekly and yearly billable hours, your utilization rate and billable revenue. It suits freelancers, consultants and agency teams. It is free, with no sign-up.
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Subtracts admin, meetings and sales time from your total hours to show what you can invoice each week.
Shows billable hours as a share of all hours worked, so you can see how much time goes unpaid.
Multiplies billable hours by your rate to show revenue per week and annual revenue at your rate.
Runs in your browser with no sign-up, so you can test as many rate and hours scenarios as you like.
Three steps from a blank form to a result you can use.
Add the total hours you work in a typical week and how many of those go to admin, meetings and sales.
Enter your hourly rate and the number of weeks you work per year after holidays, vacation and sick days.
See billable hours per week and per year, your utilization rate, and revenue per week and per year at your rate.
Billable hours are the hours you can charge directly to a client. Most people work more hours than they bill, and the gap decides what they really earn per hour.
The calculator uses five simple steps. The billable value step (hours multiplied by rate) and the utilization formula match the definitions published by time tracking tools such as Harvest and Toggl.
Billable hours per week = Total hours per week - Non-billable hours per week (never below 0) Utilization rate (%) = Billable hours per week ÷ Total hours per week × 100 Billable hours per year = Billable hours per week × Working weeks per year Revenue per week = Billable hours per week × Hourly rate Annual revenue at your rate = Billable hours per year × Hourly rate
A related figure is the effective hourly rate: billable revenue divided by all hours worked. It shows what you earn for every hour you put in, paid or not.
Example: A designer works 45 hours a week and spends 13 of them on admin, meetings and sales. That leaves 45 - 13 = 32 billable hours per week. Utilization is 32 ÷ 45 × 100 = 71.1%. At $90 per hour, revenue per week is 32 × $90 = $2,880. Over 46 working weeks, that is 32 × 46 = 1,472 billable hours, and annual revenue at that rate is 1,472 × $90 = $132,480. Total hours worked in the year are 45 × 46 = 2,070, so the effective hourly rate is $132,480 ÷ 2,070 = $64.00. The designer bills $90 but earns $64 for each hour actually worked. These figures are an illustration, not a benchmark.
Billable time is work you can charge directly to a client. Non-billable time keeps the business running but produces no invoice. The split decides your utilization, so it pays to sort tasks the same way every week.
| Usually billable | Usually non-billable |
|---|---|
| Design, writing, coding or consulting for a client | Admin, bookkeeping and invoicing |
| Client calls and meetings that are in scope | Internal team meetings |
| Research done for a specific client project | Sales calls, proposals and business development |
| Revisions inside the agreed scope | Training and learning new tools |
| Project work logged against a client task | Filling in timesheets |
Some items depend on your contract. Travel time, extra revisions and kickoff meetings can fall on either side. Write the rule into the agreement so the client and your team know what gets billed.
Toggl notes that professionals often undercount non-billable time, which inflates utilization. Logging work as it happens, rather than rebuilding the week from memory on Friday, gives a truer number.
There is no single correct utilization rate. It depends on your role and how much selling and admin you do yourself. Time tracking vendors publish rough ranges you can use as a starting point.
| Role | Published range | Source |
|---|---|---|
| Freelancers | 50 to 70% of time billed | Harvest |
| Freelancers | 60 to 70% | Toggl |
| Billable agency staff | 75 to 85% | Toggl |
| Law and consulting | 65 to 75% | Harvest |
Solo workers usually sit lower because they handle their own sales, finance and admin. Agency staff with a dedicated account team can bill a higher share. We suggest tracking your own rate for a few months and improving against that baseline, not against an industry average.
Toggl also warns against setting a rate by dividing target income by 2,080 hours (40 hours × 52 weeks). That shortcut assumes every hour is billable and ignores time off, so the real income comes out well below the target.
Quick answers about the Billable Hours Calculator.
Subtract your non-billable hours from your total hours worked. If you work 40 hours a week and spend 12 on admin, meetings and sales, you have 28 billable hours. Multiply by your working weeks per year for an annual figure, then by your hourly rate for billable revenue.
Utilization rate is the share of your working time that you can bill to clients. Divide billable hours by total hours worked and multiply by 100. Someone who bills 30 of 40 hours has a 75% utilization rate. The remaining 25% is time the business pays for without income.
It depends on your working weeks and your non-billable load. Someone billing 30 hours a week for 46 weeks reaches 1,380 billable hours. Use the calculator with your own numbers, because full-time contracts often assume 2,080 hours, which treats every working hour as billable and ignores time off.
Non-billable time is work that keeps the business running but cannot be charged to a client. Common examples include admin, bookkeeping, invoicing, internal meetings, sales calls, proposals, training and filling in timesheets. Some items, such as travel or extra revisions, depend on what your contract says.
Your billable rate is what you charge for one hour of client work. Your effective hourly rate is billable revenue divided by every hour you worked, paid or not. If admin takes a third of your week, your effective rate falls well below the rate on your invoices.
Yes. The calculator is free to use and needs no account or sign-up. It runs in your browser, and you can change any field to test a new scenario, such as fewer admin hours or a higher rate. Use it as often as you like for planning or pricing reviews.
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