Billable time turns into invoice value only after rates, taxes, and write-downs are applied. Everhour keeps those inputs organized.
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A billable-hours calculation answers one practical question: how much approved client work should be billed before payment collection. On iPhone, the math does not change; the smaller screen just makes clean inputs more important. You need the approved hours, the correct billable rate for each person or service category, any non-billable exclusions, and any jurisdiction-specific tax input when the service is taxable.
For U.S. work, totals are normally denominated in U.S. dollars. 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 different services can be taxed differently. A clean billable-hours result separates the pre-tax labor total from any tax line so the invoice basis remains easy to review.
Start by deciding whether the work is billed by project rate, member rate, task rate, or another written agreement. That decision changes the multiplier. If one consultant bills at $185 per hour and another support role bills at $92 per hour, combining the hours first and applying one blended rate creates the wrong invoice value unless the contract explicitly uses that blended rate.
For U.S. lawyers, 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. For any professional service, the same operating rule is useful: calculate from the rate source the client approved, then keep write-downs and non-billable adjustments visible.
The core formula is `billable hours × billable rate = labor amount`. Run that formula separately for each rate category, add the category totals, then add taxable-service charges only when the relevant state and local rules apply. Do not convert a missing tax rule into a 0% rate. If no applicable tax is identified, leave tax out rather than inventing a zero-tax line.
For example, a data migration project includes 17 approved senior consultant hours at $185 per hour and 19 approved support specialist hours at $92 per hour. The senior consultant amount is $3,145.00, the support amount is $1,748.00, and the pre-tax labor total is $4,893.00. If a taxable-service rule applies, calculate tax from the jurisdiction-specific rate as a separate line after the labor total.
A one-time billable-hours calculation is enough when you have a short job, one or two rates, no disputed entries, and a simple invoice. It is also enough for a quick mobile check before sending a draft from iPhone. Save the calculator to the iPhone Home Screen from the Share sheet when you need repeat access during billing reviews.
A managed workflow becomes necessary when rates change by person, project, task, or effective date. Everhour supports separate cost and billable rates, per-person defaults, per-project overrides, dated rate history, and project, member, or custom task pricing. That structure matters when the same approved hours must feed billing, margin review, and future rate audits without rebuilding the calculation manually.
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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Multiply approved billable hours by the correct billable rate, then add the resulting line totals. Keep each rate category separate when people, tasks, or projects use different rates. Exclude non-billable time from the invoice total, but keep it available for internal utilization or profitability review.
No. An iPhone changes the workflow, not the calculation. The same inputs apply: approved hours, billable rates, exclusions, and any jurisdiction-specific tax rule. The main risk is input error on a small screen, so review each rate line before copying the final total into an invoice or accounting app.
Only include sales tax when the service is taxable in the applicable state and local jurisdiction. The United States has no federal VAT/GST or national sales-tax rate. Some services are not taxed, and some jurisdictions tax service activity differently, so the tax input must come from the location and service type.
The common mistake is adding all hours together and applying one rate. That works only when every approved hour uses the same billable rate. If senior consulting, support, legal review, or project management uses different pricing, calculate each category separately and add the line totals afterward.
Payment timing matters when the due date controls collection follow-up or late-payment treatment. For federal-agency vendor invoices, Prompt Payment rules generally use the contract date, accepted discount terms, an accelerated-payment rule, or 30 calendar days after receipt of a proper invoice. That timing is separate from the labor calculation.
Everhour separates internal cost rates from client-facing billable rates and supports per-person defaults, per-project overrides, dated rate changes, and project, member, or custom task pricing. That lets approved hours price correctly when one client has multiple roles, projects, or rate periods.
Use structured rates before invoices leave the draft stage. Everhour keeps billable pricing tied to people, projects, tasks, and dated changes for cleaner billing totals.
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