Everhour embeds time tracking in work tools, while billable-time math still depends on clean hours, rates, and billing rules.
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Admin, meetings, internal work
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A billable time calculation answers one practical question: how much approved client work should be charged before payment processing, collection, or accounting adjustments. The core inputs are billable hours, the applicable hourly rate, the billing increment, and any write-down that reduces the invoiceable amount. Non-billable internal work belongs outside the charge total, even when it happened on the same project.
For U.S. work, the result is normally stated in USD. There is no federal VAT/GST or national sales-tax rate for billed professional time. If a taxable service requires tax, the tax input has to match the state and local jurisdiction, not a single U.S. default rate. That keeps the billable-time total separate from any location-specific tax line.
The first decision is which time entries count. A raw timer total is not always invoiceable if the client contract excludes admin work, internal review, training, or correction time. Mark those entries non-billable before calculating the charge, then apply the rate only to approved billable entries. This prevents the common mistake of multiplying total project hours by the client rate.
Rounding also changes the total. A 0.1-hour increment rounds to six-minute blocks, while a 15-minute increment rounds to quarter-hour blocks. Rounding each entry can produce a different result than rounding the final daily total, so use the method stated in the engagement terms or billing policy. For legal fees, U.S. lawyers must communicate the basis or rate of fees and expenses in writing for new client-lawyer relationships, subject to ABA Model Rule 1.5 exceptions.
The base formula is billable hours multiplied by the applicable hourly rate. If a project uses multiple roles or task rates, calculate each line separately, then add the line totals. After that, apply write-downs, discounts, or write-offs as separate adjustments. A write-down reduces billed value; it does not turn approved client work into non-billable work.
For example, a client training project includes 21 approved setup hours at $135 per hour and 14 approved documentation hours at $110 per hour. Setup equals $2,835 and documentation equals $1,540, for a gross billable value of $4,375. If the invoice receives a 10% write-down, the reduction is $437.50 and the adjusted billable amount is $3,937.50.
A one-off calculator is enough when you need a quick fee check from a small set of approved hours and stable rates. It works for quoting a draft invoice, checking a manual timesheet, or confirming that a write-down was applied correctly. It is also enough when tax is handled later in accounting software or the service is not taxable in the relevant state and local jurisdiction.
A managed workflow becomes necessary when people log time across multiple tools, rates change by project, or approvals control what reaches the invoice. Everhour can embed tracking controls in supported project tools, sync project and task metadata, expose timesheets and budgets inside work tools, and connect invoices to QuickBooks Online, Xero, or FreshBooks for the billing handoff.
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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Billable time is approved work time that the client can be charged under the contract, engagement letter, or billing policy. It excludes internal meetings, rework, training, admin, and other non-billable categories when those items are outside the client billing terms. The calculation should use billable entries only, not total time spent on the project.
Multiply each approved billable time total by its applicable hourly rate, then add the line totals. If the project uses a write-down, discount, or write-off, apply it after the gross billable value is calculated. If tax applies to the service, add the correct state and local tax input separately.
Tracked time records all work performed. Billed time records the portion charged to the client after non-billable exclusions, approvals, rounding, write-downs, and rate rules. A project can have 50 tracked hours and 42 billable hours if 8 hours were internal, out of scope, or removed before invoicing.
There is no federal VAT/GST or national sales-tax rate for U.S. billable time. Sales tax treatment is state and local, and some services are not taxed. If the service is taxable, use the rate for the jurisdiction where the tax rule applies, such as the applicable combined state and local rate.
The most common mistake is multiplying total project hours by the client rate before removing non-billable work. Another frequent error is applying a blended average rate when the project uses role-specific rates. Calculate each approved billable category separately, then apply write-downs and tax inputs after the subtotal is correct.
Everhour integrates with tools such as Asana, ClickUp, GitHub, Jira, Monday, Notion, Trello, QuickBooks, Xero, and more. Tracking controls can sit inside supported workflows, while project and task metadata sync into Everhour so billable time stays tied to the work structure your team already uses.
Everhour lets admins set project billing status and mark specific tasks as non-billable within billable projects. Reports can show billable time, non-billable time, billable amount, and cost, so reviewers can check what should reach the invoice before billing.
Track billable work where tasks happen, review approved entries, and send clean billing data forward. Everhour connects project-tool tracking to invoice-ready time without rebuilding timesheets manually.
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