Billable totals need rates, approvals, and invoice status aligned. Everhour keeps those billing details connected to tracked time.
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Working hours in the period
Admin, meetings, internal work
Industry average is 75–80%
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This calculation answers how much client-facing work should be charged before the invoice is sent. It starts with approved billable time, applies the correct rate, and separates non-billable work so internal planning time, admin time, or excluded tasks do not inflate the client total. For U.S. work, the amount is normally shown in USD.
An all-in-one view also shows where the number came from. You need the hours, rate basis, billing increment, write-downs, and invoice status in one path. That matters when a manager approves time, a finance person checks the amount, and the client expects the invoice to match the written fee arrangement.
The core formula is `billable hours x billable rate = billable amount`. When different people, tasks, or projects use different rates, calculate each line separately and then add the results. Do not average rates unless the client agreement uses a blended rate. Keep non-billable entries outside the billable subtotal.
For example, a client matter includes 19 approved hours from a consultant at $165 per hour, 11 approved hours from a project manager at $145 per hour, and 7 approved hours from a reviewer at $95 per hour. The line totals are $3,135, $1,595, and $665. The billable amount before tax, expenses, discounts, or write-downs is $5,395.
An all-in-one calculation should not stop at the raw subtotal. It should preserve the path from time capture to billable flagging, approval, rate selection, invoice preparation, and payment tracking. The common mistake is treating a spreadsheet total as final while approvals, non-billable exclusions, or rate overrides are still unresolved.
For U.S. invoices, do not add a national VAT or GST line because the United States has no federal VAT/GST. Sales tax treatment is state and local, and some services are not taxed. If a service is taxable in the applicable jurisdiction, add a jurisdiction-specific tax input after the billable subtotal, not as a universal federal rate.
A one-off calculation is enough when you have a small set of approved entries, one rate, no invoice history, and no tax question beyond the subtotal. It is also enough for checking a client estimate, comparing a planned budget with actual hours, or confirming that a single invoice line is mathematically correct.
A managed workflow matters when multiple people submit time, rates vary by person or project, entries need approval, and invoices must exclude non-billable tasks. Everhour fits that longer path by connecting tracked time with billable rates, dated rate history, reports, and invoicing handoff instead of leaving each step in a separate file.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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It should include approved billable hours, the correct billable rate, billing increments, non-billable exclusions, write-downs, reimbursable expenses if billed through the same invoice, and any jurisdiction-specific tax input when the service is taxable. Keep each component visible so the final amount can be checked against the client agreement.
Apply rates the same way the client agreement prices the work. Use person rates when each team member has a stated hourly rate, task rates when certain work types carry special pricing, and project rates when one rate applies across the work. Mixing these methods without a clear basis creates invoice disputes.
Write-downs belong after the billable amount is calculated. First calculate billable hours at the agreed rates, then subtract the approved write-down so you can see both the value of the work performed and the amount actually billed. Combining the two hides realization loss.
No. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. Sales tax rules are state and local, and some services are not taxed. Use a jurisdiction-specific tax input only when the service is taxable under the applicable state or local rule.
A basic calculator gives a subtotal from hours and rate. An all-in-one calculator also accounts for multiple rates, billable and non-billable entries, approvals, write-downs, expenses, tax inputs, invoice status, and the handoff from time records to client billing. The extra fields prevent clean math from becoming an incomplete invoice.
Everhour separates cost and billable rates, supports default per-person rates and per-project overrides, and preserves dated rate history. That lets teams price billable work by project, member, or task while keeping older reports tied to the rates that applied at the time.
Everhour Billing & Invoicing turns tracked billable time and expenses into invoices, excludes non-billable work, and can group line items by project, task, person, or date. Invoices can be exported to QuickBooks Online, Xero, or FreshBooks with invoice status visible in Everhour.
Use Everhour to manage rates, dated rate changes, and billable project rules so approved time becomes cleaner client billing with fewer manual recalculations.
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