Everhour turns tracked time into reporting, while accurate client totals still start with clean billing math.
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.
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Measurement
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Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.
A billing-hours calculation answers three practical questions: how many hours are chargeable, which rate applies to each hour, and what amount should move to the invoice. It is not the same as total worked time. Internal meetings, rework, sales calls, training, or admin time can belong in the project record without becoming client-billable time.
The result matters whenever you price time-and-materials work, review a client invoice, check realization, or explain why the amount billed differs from the hours worked. In the United States, billable-hour totals are normally stated in USD. Any sales tax or gross receipts tax input must be jurisdiction-specific because the United States has no federal VAT/GST or national sales-tax rate for billed professional time.
The base formula is simple: billable amount = approved billable hours × billing rate. When a project has multiple roles or rates, calculate each line separately and add the results. If a client receives a write-down, subtract it after the gross billable value is calculated, so the record still shows the approved hours and the billed amount.
For example, a client research project includes 26 approved analyst hours at $140 per hour and 18 approved review hours at $95 per hour. The gross billable value is $5,350. If the reviewer writes down 4 review hours at $95, subtract $380. The invoice-ready labor amount is $4,970 before any jurisdiction-specific tax, expenses, discounts, or payment terms.
The common mistake is treating every logged hour as a billing hour. Billing hours should reflect approved, client-chargeable work. Billed hours are the hours that actually make it onto an invoice after exclusions, write-downs, caps, or fixed-fee adjustments. Worked hours, billable hours, and billed hours can all be different numbers on the same project.
That distinction gives you useful management metrics. Utilization compares billable work with available work capacity. Realization compares billed value with billable value before write-downs. Collection compares cash received with invoiced amount. Effective billing rate divides the billed amount by the relevant hour base, usually billed hours or total worked hours, depending on the decision you are making.
A one-off calculator is enough when you have a short list of approved entries, one or two rates, and no ongoing approval trail. It is also enough for checking a client question, estimating an invoice before review, or comparing two pricing options before sending a proposal.
A managed workflow becomes necessary when several people log time, entries need approval, rates vary by project or person, or invoices must match reporting later. Everhour Reporting can group billable time, non-billable time, billable amount, cost, member, task, client, and invoice status in customizable reports, so the billing record does not have to be rebuilt from scattered spreadsheets.
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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Billing hours are approved hours that a client can be charged for under the project agreement, engagement letter, statement of work, or internal billing policy. They exclude non-billable work such as admin time, sales activity, internal review, or entries written off before invoicing. Keep the excluded time visible for management reporting instead of deleting it.
Calculate each rate line separately, then add the results. Do not average rates before multiplying unless the contract uses a stated blended rate. For example, senior, specialist, and coordinator time should each use its own approved hours and billing rate, because combining hours first can overstate or understate the invoice amount.
Apply write-downs after the gross billable value is calculated. That keeps the original approved work visible while showing the amount removed from the client invoice. A write-down can reduce hours, dollars, or a specific line item, but it should not erase the underlying time record if you need realization reporting.
There is no federal VAT/GST or national sales-tax rate for billed professional time in the United States. Tax treatment is state and local. Some services are not taxed, while places such as Hawaii, New Mexico, and Texas have specific rules for certain business activities or taxable services. Use the jurisdiction-specific tax input only when the billed service is taxable.
Realization measures how much of the billable value became billed revenue after write-downs, caps, or pricing adjustments. Collection measures how much of the invoiced amount was actually paid. A project can have strong realization and weak collection if the invoice is accurate but unpaid.
Everhour Reporting provides customizable reports with 45+ columns, filters, grouping, exports, and scheduled email delivery. Admins can review billable time, non-billable time, billable amount, cost, task, member, client, and invoice status in one report before billing decisions are finalized.
Everhour Billing & Invoicing turns tracked billable time and expenses into invoices, calculates amounts from rates while excluding non-billable work, and marks invoiced time so it does not appear again in future invoices. Invoices can be exported to QuickBooks Online, Xero, or FreshBooks.
Use the calculator for quick invoice math, then let Everhour Reporting group approved billing hours by client, task, member, cost, and invoice status for repeatable billing review.
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