Annual targets turn weekly billable work into revenue plans. Everhour keeps tracked time connected to project billing records.
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.
This calculation answers how many client-chargeable hours you expect to record in a year and what those hours are worth before collections, write-downs, and jurisdiction-specific tax treatment. It is useful for freelancers setting an annual revenue target, firms assigning quotas, and service teams checking whether staffing capacity supports expected client work.
The result is not the same as total work hours. Internal meetings, training, admin time, proposals, and unapproved client work can be tracked but excluded from billable totals. For U.S. billing, totals are normally shown in U.S. dollars, and tax is not a single federal VAT/GST rate; state and local rules determine whether a taxable service needs a tax input.
The cleanest annual estimate starts with working weeks, expected billable hours per week, and any known time away from client work. A person who works 52 calendar weeks but takes vacation, holidays, training, or firm closures should not multiply weekly billable time by 52 unless those weeks are truly available for billable production.
For example, 38 billable hours per week across 46 working weeks equals 1,748 annual billable hours. If the standard work schedule is 40 hours per week for those 46 weeks, total work capacity is 1,840 hours. That makes the annual billable utilization 95%, before write-downs or uncollected invoices change the revenue picture.
The basic formula is billable hours multiplied by the applicable hourly rate, after the time has been rounded to the billing increment and approved for billing. If 1,748 billable hours are invoiced at $155 per hour, the annual billable value is $270,940. Different rates by person, task, matter, or project should be calculated separately and then added together.
Rounding matters because annual totals magnify small entry-level differences. A 0.1-hour billing increment handles six-minute units, while a 0.25-hour increment handles 15-minute units. Raw timer time, rounded billable time, written-down time, and invoiced time should stay separate, because each answers a different management question.
A yearly billable-hour target is easy to overstate when it ignores non-billable work that still has to happen. A 1,800-hour target across 46 working weeks requires about 39.13 billable hours per working week. If the person also handles sales calls, internal reviews, mentoring, or admin work, the calendar has to support those duties outside the billable target.
The common mistake is treating the target as revenue already earned. Billable hours show chargeable production. Billed hours reflect what made it onto invoices after review and write-downs. Collected revenue reflects what clients actually paid. An annual calculator gives the production baseline, but realization and collection decide whether the target turns into cash.
A calculator is enough when you need a one-time annual estimate, a quota check, or a quick comparison between rates. It works well when the inputs are fixed: working weeks, billable hours per week, hourly rate, and known write-down assumptions. Keep a separate note for taxable services because U.S. state and local tax treatment is jurisdiction-specific.
A managed workflow is the better choice when people track time continuously, mark entries billable or non-billable, approve time before billing, and send invoice data into accounting. Everhour can embed tracking controls inside supported project tools, sync project and task metadata, and keep timesheets and budget context available where the work is managed.
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.
Multiply expected billable hours per working week by the number of working weeks in the year. Use working weeks, not calendar weeks, after excluding vacation, holidays, firm closures, and other planned non-billable periods. For a revenue estimate, multiply the annual billable hours by the applicable hourly rate after rounding and approval rules are applied.
No. Annual billable hours should include only time that is chargeable to a client under the project, matter, contract, or firm policy. Non-billable work can still be tracked for utilization and staffing analysis, but it should not inflate the billable-hour total used for invoicing or revenue planning.
The target fails when it ignores the non-billable hours required to run the work. Admin tasks, client development, internal reviews, corrections, and unapproved entries consume capacity. A target also fails when it assumes all billable production becomes billed and collected revenue, even though write-downs and unpaid invoices can reduce the final amount.
Billing increments change each time entry before it becomes billable time. Six-minute billing uses 0.1-hour increments, while 15-minute billing uses 0.25-hour increments. Over a full year, rounding differences across hundreds of entries can move totals enough to affect quotas, invoices, and realization analysis.
No. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. Sales tax treatment is state and local, and some services are taxable while others are not. A U.S. annual billable-hours calculation needs a jurisdiction-specific tax input only when the service is taxable.
Everhour integrates with tools such as Asana, ClickUp, GitHub, Jira, Monday, Notion, Trello, and others, adding tracking controls inside supported workflows. Project and task metadata sync into Everhour so billable time can be reviewed in the same work context used to manage delivery.
Everhour Billing & Invoicing turns tracked billable time and expenses into client invoices, excluding non-billable work. Users can select uninvoiced time, preview the breakdown, group invoice line items by project, task, person, or date, and export invoices to QuickBooks Online, Xero, or FreshBooks.
Track approved billable time where work happens. Everhour connects supported project tools to timesheets, budgets, and billing workflows for cleaner annual billable-hour reporting.
14-day free trial · No credit card · Cancel anytime
