Law-firm billing turns recorded time into invoice value; Everhour keeps budgets visible as matters accrue hours.
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.
A law-firm billable-hours calculation answers a direct billing question: how much recorded client work is worth before or after adjustments. For an hourly matter, the starting point is billable hours multiplied by the timekeeper's standard hourly rate. The result gives you the gross billable value before discounts, write-downs, billing realization, collection realization, expenses, or jurisdiction-specific tax inputs.
For U.S. lawyers, the fee basis or rate must be communicated before or within a reasonable time after representation begins, preferably in writing under ABA Model Rule 1.5. The calculation should match that engagement basis: hourly, fixed, or contingent. When the matter is hourly, use the approved billable time, the correct timekeeper rate, and the billing increment stated in the firm's policy or agreement.
Law-firm billing often uses one-tenth-hour or one-quarter-hour increments. ABA guidance permits rounding to minimum time periods such as 0.1 or 0.25 hour, but only as an exception to the rule that hourly clients may not be billed for more time than actually spent on the matter. Apply the increment consistently before multiplying by the rate.
For example, a litigation matter includes 13 approved partner hours at $375 per hour, 24 associate hours at $225 per hour, and 9 paralegal hours at $135 per hour. The standard billable value is $4,875 + $5,400 + $1,215 = $11,490. If the firm invoices 88% of that value after write-downs, the realized invoice amount is $10,111.20 before any applicable tax or expense lines.
Law-firm billable hours are not only invoice inputs; they also show whether work patterns support annual targets. Published law-school guidance places stated law-firm billable requirements around 1,700 to 2,300 hours per year, while noting that a 2,000-hour requirement is not typical across all firms. A calculator helps translate monthly or matter-level entries into that larger workload picture.
Do not confuse billable value with collected revenue. Utilization measures the share of an eight-hour workday spent on billable work, realization measures the share of billable work invoiced, and collection measures the share of invoiced work paid. Current legal-industry benchmarks cite 38% utilization, 88% realization, and 93% collection, leaving average firms collecting on about 2.4 billable hours per eight-hour day.
A one-off calculation is enough when you need to check a draft invoice, estimate matter value, or compare a timekeeper's month against a target. It is not enough when multiple lawyers enter time daily, partners review write-downs, clients require budget visibility, or the firm needs a reliable record of approved time before invoicing.
Everhour Project Budgeting fits the managed workflow side: matters can carry hour-based or money-based budgets, recurring budget periods, and budget alerts at 75%, 90%, 100%, or custom thresholds. For firms watching retainer burn, alternative-fee caps, or client-level limits across matters, that budget structure keeps the calculation connected to live time entry instead of a spreadsheet rebuilt after the fact.
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.
Start with approved billable hours for each timekeeper, apply the firm's billing increment, and multiply by the correct hourly rate. Add the timekeeper totals to get standard billable value. Then apply write-downs, discounts, realization, expenses, and jurisdiction-specific tax treatment only when those items apply to the client invoice.
Use a blended rate only when the client agreement or billing policy permits it. Otherwise, calculate each timekeeper category separately because partner, associate, and paralegal rates usually produce different billable values. Separate lines also make realization easier to review when a partner writes down one role but not another.
The common mistake is rounding every small entry upward without checking whether the total bills more time than was actually spent on the matter. ABA guidance allows minimum increments such as 0.1 or 0.25 hour only as an exception to the rule that hourly clients may not be billed for more time than actually spent.
Utilization turns total work time into billable work time. Realization turns billable work into invoiced work. Collection turns invoiced work into paid revenue. A matter can show strong billable hours but weak collected revenue if write-downs reduce the invoice or the client pays only part of the billed amount.
No. The United States has no federal VAT/GST or single national sales-tax rate for billed professional time. Sales tax treatment is state and local, and services are taxed differently by jurisdiction. Use a jurisdiction-specific tax input when the legal service is taxable.
Everhour Project Budgeting tracks hour-based and money-based budgets as time is logged, with recurring budget periods and email alerts at 75%, 90%, 100%, or custom thresholds. A firm can monitor matter limits before a draft invoice reveals an overrun.
Track approved legal time against live matter budgets, review thresholds before write-downs pile up, and keep invoice math tied to Everhour Project Budgeting.
14-day free trial · No credit card · Cancel anytime
