Billable totals need only hours, rates, and rounding rules; Everhour keeps the supporting reports organized.
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 billable-hours calculation answers one practical question: how much approved client work should be charged before taxes, discounts, payments, or write-downs. The core inputs are billable hours, the applicable rate, and the billing increment used by the engagement. Non-billable work stays visible for management, but it does not enter the client charge unless the agreement says otherwise.
For U.S. work, the total is normally denominated in U.S. dollars. There is no federal VAT/GST or national sales-tax rate for billed professional time. If the service is taxable, the tax input must come from the relevant state and local jurisdiction, not from a single U.S. default rate.
The easiest reliable version uses one row per rate category: description, approved billable hours, hourly rate, and any required rounding rule. That is enough for a quick check when the client agreement is straightforward and the time has already been reviewed. Do not mix unapproved time, internal admin time, or fixed-fee work into the same total.
Speed fails when the calculator hides decisions. If a task is client-facing but written down before billing, use the reduced billable hours. If a service date crosses a rate change, split the work into separate rows. If tax applies, calculate the pre-tax billable total first, then apply the jurisdiction-specific tax treatment separately.
The formula is direct: billable hours multiplied by the applicable hourly rate, summed across all rate categories. For example, a client onboarding project includes 31 approved setup hours at $135 per hour and 14 approved review hours at $95 per hour. The setup line is $4,185.00, the review line is $1,330.00, and the pre-tax billable total is $5,515.00.
Rounding belongs before the rate is applied, not after the total is calculated. A 0.1-hour increment rounds to six-minute blocks, while a 0.25-hour increment rounds to 15-minute blocks. The engagement letter, statement of work, or firm policy should control the increment. For U.S. lawyers, ABA Model Rule 1.5 requires the basis or rate of fees and expenses to be communicated in writing for new client-lawyer relationships, subject to the limited low-cost exception.
A one-off calculator is enough when you have a small set of approved entries, one client, known rates, and no need to preserve an approval trail. Use it to check whether an invoice draft matches the expected pre-tax total. Keep the source time log with the calculation so the number can be traced later.
A managed workflow becomes necessary when several people log time, rates differ by person or task, entries need approval, or billing totals feed invoices and reports. Everhour Reporting can group billable time by client, project, member, or task, then export the reviewed data for billing review without rebuilding the total from scattered notes.
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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You need approved billable hours, the hourly rate, the billing increment, and any split by task, person, matter, or project. Keep taxes, discounts, payments, and write-downs outside the first pass. That gives you the clean pre-tax billable value before invoice-specific adjustments.
Use only reviewed time, apply the rounding rule before multiplying by the rate, and separate each rate category into its own line. The common mistake is averaging rates too early, which hides whether senior, junior, or task-specific work was priced correctly.
Split time when the hourly rate changes, the work belongs to a different task category, or part of the work is non-billable. Splitting also matters when a client needs invoice detail by phase, person, or deliverable. One blended line is faster, but it removes detail needed for review.
No. The billable-hours formula produces the service charge before tax. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. If the service is taxable, state and local rules determine the correct tax input.
Apply the write-down before billing and calculate the charge from the reduced billable hours or reduced amount. Keep the original worked time separately for utilization and realization review. That prevents the invoice total from overstating what the client should actually pay.
Everhour Reporting lets teams build reports with billable time, non-billable time, billable amount, cost, client, project, member, task, and other columns. Reports can be filtered, grouped, exported, or scheduled for email delivery, so reviewed billing totals stay tied to the underlying time entries.
Use the calculator for a quick total, then manage repeat billing with Everhour Reporting. Group approved billable time by client, project, member, or task and export clean billing support.
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