Complex billing mixes rates, billable status, and tax inputs. Everhour keeps those details tied to tracked time.
Track billable vs. non-billable time and see your real utilization rate and revenue potential in seconds.
Working hours in the period
Admin, meetings, internal work
Industry average is 75–80%
The calculator gives you the number — Everhour takes it from there.
One click and you're timing. Start a timer, add an entry, edit the details. This is exactly how it feels in Everhour.
Set a budget, assign rates, and get alerted before you're over.
Measurement
Track your budget through time or costs
Every report you need — configured your way, always up to date.
Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.
An advanced billable-hours calculation answers more than "hours times rate." It shows which approved hours are billable, which rate applies to each person, task, or project, what gets excluded as non-billable, and what invoice subtotal comes out before any tax or write-down. That matters when a project uses blended staffing, custom task rates, or different billing terms by matter.
The output should give you a defensible subtotal in U.S. dollars, then leave room for jurisdiction-specific tax treatment when the service is taxable. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. State and local rules control the tax input, so the calculation needs the right jurisdiction instead of a default national percentage.
Start by assigning each time entry to the correct billing bucket: project rate, member rate, task rate, or non-billable. A senior consultant at $250 per hour and an analyst at $125 per hour should not be averaged unless the client contract says the invoice uses a blended rate. If a task is excluded from billing, keep it in utilization reporting but remove it from the billable subtotal.
Advanced billing also needs a clear distinction between billable hours, billed hours, and collected revenue. Billable hours are eligible for invoicing. Billed hours are the hours actually included on an invoice after write-downs or scope adjustments. Collected revenue is what the client pays. Mixing those three numbers hides realization problems and makes project profitability look cleaner than it is.
The core formula is: billable amount = billable hours x applicable billing rate. For multiple rates, calculate each line separately, then add the line amounts. If the service is taxable in the relevant state or locality, apply the tax input to the taxable subtotal, not to non-billable time. Keep any write-down separate so the original billable value remains visible.
For example, a project has 18 approved billable hours at $250 per hour and 32 approved billable hours at $125 per hour. The line amounts are $4,500 and $4,000, for an $8,500 subtotal. If the invoice uses a Texas combined taxable-services rate of 8.25%, the tax is $701.25 and the invoice total is $9,201.25.
Advanced calculations need room for exceptions that a basic total skips. Hawaii has no sales tax but applies a 4% general excise tax to most business activities, with county surcharge pass-through caps reaching 4.7120% in counties that adopted the surcharge. New Mexico gross receipts tax includes performing services in New Mexico, with combined rates from 5.125% to 8.6875% by business location.
For U.S. legal work, the calculation also depends on fee disclosure. ABA Model Rule 1.5 requires the scope of representation and the basis or rate of fees and expenses to be communicated in writing for new client-lawyer relationships, subject to the rule's limited low-cost exception. The calculator can total the math, but the rate basis still needs to match the engagement terms.
A one-off calculator is enough when you need to price a small invoice, test a rate scenario, or explain a subtotal before billing. It also works for checking tax treatment separately from the time ledger, especially when the service crosses state or local rules. Keep the inputs, rate basis, and exclusions with the invoice support.
A managed workflow is better when people log time continuously, some tasks are non-billable, rates vary by person or task, or invoices need approval before sending. Everhour supports billable and non-billable time through project billing status, task-level non-billable controls, custom task rates, member-rate exceptions, and admin reports for billable time, non-billable time, billable amount, and cost.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
High Performer
G2
Summer 2026
Best Ease Of Use
Capterra
Summer 2026
Rated in the top time trackers across G2, Capterra, and TrustRadius — with consistent praise for ease of use, integrations, and support.
You need approved time entries, billing status, the applicable rate for each line, any write-down or exclusion, and the correct tax input when the service is taxable. For U.S. invoices, totals are normally denominated in U.S. dollars, and tax treatment is state and local rather than a federal VAT/GST calculation.
Use member rates when the client agreement prices each person's work separately, such as partner, manager, and analyst rates. Use a blended rate only when the contract states one shared hourly rate for the team or matter. Do not average rates after the work is done unless the billing terms allow that treatment.
Non-billable tasks stay in the time record but do not enter the invoice subtotal. That separation lets you review utilization and project cost without charging the client for excluded work. A common mistake is deleting non-billable time entirely, which makes the invoice cleaner but damages profitability and staffing analysis.
Write-downs show the gap between eligible billable value and the amount actually billed. If $8,500 of eligible work is reduced to $8,000 on the invoice, the billed amount changes, but the original billable value still matters for realization. Keeping both figures visible helps explain pricing decisions and margin pressure.
Yes, when the service is taxable in the relevant state or locality. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. For example, Texas taxable services use a 6.25% state sales and use tax rate, with local jurisdictions able to add up to 2% for an 8.25% maximum combined rate.
Everhour lets admins set project billing status, mark specific tasks as non-billable, use custom task rates, and set member-rate exceptions. Reports can show billable time, non-billable time, billable amount, and cost, so invoice review starts from categorized time instead of a rebuilt spreadsheet.
Everhour Billing & Invoicing converts tracked billable time and expenses into invoices while excluding non-billable work. Invoice data can be grouped by project, task, person, date, or other available breakdowns, which helps match the invoice format to the client's billing expectations.
Track billable status, rates, and exclusions before invoice review. Everhour keeps advanced billing inputs connected to reports, approvals, and client-ready billing totals.
14-day free trial · No credit card · Cancel anytime
